Top Ten Questions from Partnership Clients Regarding the Section 754 Election (T754)
Description:
Highlights:
How does a partner compute his or her basis in a partnership? What is the difference between a partner's inside and outside basis? What is the difference between a partner's capital account and partner's outside basis? How does Section 732(d) impact the buyer of a partnership interest? How does a partnership report a Section 754 election on the partnership's tax return? How does a partnership make a Section 754 election? How does a partnership make a Section 743(b) adjustment? How does a partnership make a Section 734(b) adjustment? How is a Section 743(b) adjustment or Section 734(b) adjustment allocated to the assets of a partnership? How is a Section 743(b) adjustment allocated within the class of ordinary income property and capital gain property?
Objectives:
Be familiar with the practical issues surrounding Section 754 and its application Effectively advise clients on these complex issues
Prerequisites:
A basic understanding of the tax rules impacting individuals and pass-through entities