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Partnerships Certificate Program LIVE - Distribution, Losses, & Basis
IRS Program #: X9QQU-T-00904-22-O
CTEC #: 6257-CE-0107
CE: 2 IRS CE & 2 CTEC credits
Speaker: Darryl Brown, PhD, EA, CPA
Distribution, Losses, & Basis
The course will demonstrate and explain the taxation of current and liquidating distributions including cash and non-cash distributions from a partnership to a partner including, when a partner recognizes gain or loss, and how the disguised sale rules apply to partnership distributions. Correlatively, the course will demonstrate and explain the calculation and concept of tax basis as it relates to partnerships and partners as well as the interplay between a partner’s outside basis and the deductibility of partnership losses. Finally, the course will discuss and explain other statutory limitations on the deductibility of partnership losses.
- Recognize when a partnership distribution is subject to the disguised sale rules
- Understand the tax treatment of cash and non-cash distributions by a partnership to a partner including gain or loss recognition
- Determine the partner’s initial tax basis, i.e., “outside basis”
- Calculate inside and outside basis including how liabilities affect both
- Understand how to treat distributions and calculate gain or loss, if any
- Navigate the hurdles imposed on the deductibility of pass-through losses including
- basis, at-risk, passive activity, and excess business loss limitations