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Partnership Basis: Inside & Outside - (2 CE)

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Partnership Basis: Inside & Outside

IRS Program #: X9QQU-T-00780-21-O/S
CE: 2
Speaker: Jane Ryder, EA, CPA


Complete and accurate partnership basis calculations, inside and outside, offer substantial tax savings for partner loss utilization and reducing tax on excess distributions or the sale of a partnership interest. Partnership basis is currently an IRS compliance target and we need to understand the many recent changes for partnership basis K-1 reporting as the individual or the business tax preparer we need confidence in our basis reporting skills. We need strong skills related to the many components of basis; allocating profit, losses, and other Schedule M-1 adjustments, partnership contributions, loans to the partnership, loan guarantees, distributions, partner benefits, sale of a partnership interest, distributions of partnership assets and more. Basis is the first of four loss limitations a partner is subject to before benefiting from pass-through losses on their individual taxes, if the basis is wrong the partner may miss a valid pass-through loss, overpay taxes on distributions or the sale of a partnership interest, have a weaker position when negotiating a partnership buy out and possibly be exposed to compliance and audit risk.

Learning Objectives:

  • Calculate and track accurate inside and outside partnership basis with a strong understanding of the complex components of basis.
  • Develop valuable tax strategies and tax planning moves to maximize a partner's tax benefits for utilizing pass through losses and minimizing tax on distributions and sale of a partnership interest.
  • Learn the latest changes to partnership K-1 basis reporting requirements.
  • Maintain important worksheets to substantiate basis records, re-construct missing basis records, and support the taxpayer's compliance and audit defense related to basis.
Level of Presentation:
  • Intermediate
 Continuing Education
This course qualifies for IRS Continuing Education Hours. NAEA reports IRS CE on a monthly basis. If you have not received your CE Hours in your IRS PTIN Account by the end of the month after receiving the certificate, please contact NAEA at education@naea.org.

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