Surgent's Understanding Partnership Taxation: Debt Allocations
2.00 Credits
Member Price $99
Non-Member Price $119
Overview
How debt is allocated to the partners in a partnership is important. It dictates how much money may be taken tax-free as a distribution, the losses that flow down to the partners, and the gain or loss on the sale of a partnership interest. However, the allocation of debt can differ depending on the type of debt it is and the type of partner we are talking about. Furthermore, 704(c) can complicate things. And what in the world is a constructive liquidation scenario? In this course, we will tackle the concept of debt allocations - how you do it, what it means, and why you do it.
Highlights
- Recourse debt allocations
- Constructive liquidation scenarios
- Nonrecourse debt allocations
- Minimum gains and nonrecourse deductions
- Section 704(c) gains
- Allocations under 704(c)
Prerequisites
Working knowledge of fundamental partnership tax concepts
Designed For
Tax practitioners who are looking to improve their knowledge of debt allocations and how they affect a partner’s tax basis
Objectives
- State how debt allocations affect the calculation of a partner’s basis in the partnership
- Recognize how recourse and nonrecourse debt are allocated to partners
- Identify the tax effects of 704(c) on contributed property
Preparation
None
Leader(s):
Leader Bios
David Peters, CPA Crossings, LLC Two Commerce Square
David R. Peters, CPA, CFP, CPCU, MST, MBA Peters Tax Preparation & Consulting, Richmond, VA & Rock Hill, SC David Peters is an independent tax preparer for Peters Tax Preparation & Consulting, and a financial advisor and outside representative for Carroll Financial Associates. He has over fourteen years of experience in financial services, including three years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer of Compare.com, an insurance price comparison company - a position he held for over three years. He was also instrumental in the early success of Elephant Auto Insurance, a six state auto insurance carrier, located in Glen Allen, VA. He holds four masters degrees, and is currently pursuing his PhD in Financial Planning. He regularly teaches courses in accounting, finance, insurance, financial planning, and ethics in Virginia, North Carolina, and South Carolina. He is an Adjunct Professor in Finance and Accounting at Winthrop University in Rock Hill, SC, and teaches regularly for Kaplan Test Preparation. He contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures.
Non-Member Price $119
Member Price $99