Mastering Partnership Basis: Inside and Outside Basis

Overview

This course will provide a detailed analysis of how to determine a partner’s tax basis for a partnership interest, with an explanation of the use of both “inside” and “outside” basis determination. An illustrated example with filled in forms will demonstrate how the process works and the potential pitfalls.

This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics that will be covered in this course include:

• Explain the use of both "inside" and "outside” basis determination.
• How to calculate tax basis capital accounts, including when the entity is formed, including the impact of contributed property.
• Clarify the importance of partnership capital accounts and partnerships debt on partner's tax basis.
• Explanation of how basis is impacted distributions and by sale and/or liquidation of the partnership interest.
• Comprehensive example to illustrate the mechanics of the basis determination process.

Prerequisites

Basic working knowledge of business taxation.

Designed For

CPAs working in public accounting firms and/or working for partnerships.

Objectives

After attending this presentation, you will be able to...

• Implement practical strategies based on a thorough understanding of the complex rules for retirement distributions
• Implement practical strategies in determining a partner’s tax basis for a partnership interest
• Identify the use of Form 1065, Schedule K-1 information for basis determination.

Preparation

None