Section 754 Step-Up in Basis Tax Issues for Partner. & LLCs Web. [S754]

Subject:

Aug 17, 2023
Time: 8:30am - 10:15am
Taxation

Credit Hours:

2.00

Price:

Member: $110.00
Non-member: $150.00

Discussion Leader:

Susan Smith, CPA

Susan Smith manages her own firm specializing in tax planning for individuals and business owners and is also a frequent speaker at tax conferences. Smith was a Senior Manager in the tax departments of Price Waterhouse and Peat Marwick (the predecessor of KPMG). While at Price Waterhouse, she also held the national specialist designation for the real estate and partnership tax practices. During her time at Peat Marwick, Smith led the real estate and tax practices locally. She was an associate adjunct professor at Widener University in the master’s taxation program. Her ratings have consistently exceeded 4.8 on a scale of 5.0. Smith is a four-time recipient of the James L. McCoy Discussion Leader of the Year Award for excellence in teaching. And in 2015, 2016, and 2018, she received the Surgent Outstanding Discussion Leader Award because of her consistently high evaluations for knowledge and presentation skills. Smith earned her Bachelor of Business Administration degree with an accounting concentration, from the University of Toledo.

Full Description

Section 754 Step-Up in Basis: Understanding the Tax Issues for
Partnerships and LLCs Webcast (S754)

August 17th, 2023 / 8:30 am 10:15 am

Live Webcast / Zoom

When a purchaser buys an existing partner's partnership interest or the interest of a member of a limited liability corporation (LLC) taxed as a partnership, the amount paid becomes the basis for the purchaser's partnership interest (outside basis). If the partnership's assets have appreciated sufficiently, the difference between the new partner's inside and outside basis can be substantial. This disparity can deprive the new partner of depreciation deductions and inflate his or her share of the gain from subsequent property dispositions unless a Section 754 election is in effect. The Section 754 election can also apply when a partnership makes a distribution of property and the basis of the distributed property to the partnership and the basis the partner/distributee will take in the distributed property are not equal. In this case, a partnership can recover basis it would otherwise lose if the 754 election were not in effect.

Major Topic:
- How and why a partnership makes a 754 election
- The effect of the 754 election when an interest in a partnership is sold or inherited
- How the 754 election applies when a partnership makes a distribution of property to one or more of its partners
- How to make the 754 basis adjustment

Learning Objectives:
- Determine the amount of a Section 754 basis step-up
- Know how to allocate the basis step-up to the partnership's assets
-Know how a partnership makes a Section 754 election and reports it to the IRS

Designed For: Any Accounting and Finance Professional who wishes to understand the tax rules and economic opportunities associated with having a partnership make a Section 754 election

CPE Credits: 2, Taxation

Level of Knowledge: Intermediate

Prerequisite: A basic understanding of the tax rules impacting individuals and pass-through entities

Acronym: S754

Discussion Leader: Susan Smith, CPA