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On-Demand: Distributions, Losses, and Basis

On-Demand: Distribution, Losses, & Basis
IRS Program #: X9QQU-T-00904-22-S
CTEC #: 6257-CE-0107
CE: 2 IRS CE & 2 CTEC credits
Speaker: Darryl Brown, PhD, EA, CPA

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.

Learning Objectives:

  • 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

Continuing Education
This course qualifies for IRS Continuing Education Hours and CTEC 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. If you require CTEC hours, email education with your CTEC member number.

Webinar Refund Policy
To request a refund, contact the NAEA education team via email at education@naea.org. An NAEA education team member will review the request for refund. If the refund request has been approved, the refund will be refunded on the same method of purchase. Live Webinars, also offered On-Demand Webinars will not be refunded.