Section 754 StepUp in Basis Understanding the Tax Issues Webcast [S75]
Subject:
Time: 10:30am-12:15pm
Credit Hours:
2.00Price:
Member: $100.00
Non-member: $150.00
Discussion Leader:
John N. SherrickJohn N. Sherrick is a partner of Sitrick & Associates, LLC in Bettendorf, Iowa. He prepares tax returns and financial statements for closely held companies and their owners. He also provides a variety of income tax, retirement, and estate-tax planning services for his clients. He also serves as an expert witness for business valuations and other tax and accounting issues. He is also a discussion leader for continuing education courses in the tax arena on a national level. John was recognized by the NCACPA as an Outstanding Seminar Speaker for 2013, and he is also the recipient of the 2011 James L. McCoy Discussion Leader of the Year Award as well as a Surgent Outstanding Discussion Leader Award. John has over 45 years of experience in public accounting with local firms. His experience includes a wide variety of tax and accounting issues for small businesses in a number of industries. He also has had experience in auditing and taxation of not-for-profit organizations on the local and national level. Sherrick received his Bachelor’s degree in Economics and Business Administration from Knox College in Galesburg, Illinois. He then received his Master’s degree in Accounting from the University of Iowa, in Iowa City, Iowa. He is licensed in both Iowa and Illinois and is a member of the Iowa Society of CPAs and the Illinois CPA Society.
Full Description
Section 754 Step-Up in Basis: Understanding the Tax Issues for Partnerships & LLCs Webcast (S754)December 5th, 2022 / 10:30 am 12:15 pm
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 Topics:
- 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 tax practitioner 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: John N. Sherrick
