Don Farmer's Partnership Basis Deep Dive: Inside vs. Outside Basis -Self-Study
Available Until
2.00 Credits
Member Price $105
Non-Member Price $130
Overview
This course provides an in-depth examination of partnership basis concepts, focusing on the distinction and interaction between inside and outside basis. Participants will analyze contributions, allocations, distributions, liabilities, and basis adjustments that commonly lead to reporting errors. Emphasis is placed on reconciling partner capital accounts, K-1 reporting, and tax basis schedules.
Please note this event was originally recorded on 08/19/2026 and must be completed by 04/30/2027 for credit.
Highlights
- Passive activity loss (PAL) rules under IRS 469
- Passive versus nonpassive activity classification
- Material participation and real estate professional requirements
- Partnership K-1 reporting and common PAL pitfalls
- Coordination of PAL rules with basis, at-risk, and 461 (l) limitations
- Disposition rules and strategies for utilizing suspended passive losses
Prerequisites
None
Designed For
CPAs and tax professionals involved in the world of tax.
Objectives
- Differentiate inside basis from outside basis and explain their tax significance
- Calculate partner basis adjustments for contributions, distributions, and liabilities
- Identify common basis errors in partnership reporting
- Analyze how basis impacts loss deductibility and gain recognition
- Reconcile capital accounts to tax basis for compliance and planning purposes
Preparation
None
Notice
Leader(s):
Leader Bios
Nicholas Preusch
Nicholas Preusch, CPA, JD, LLM, is a tax manager with PBMares, LLP, in Fredericksburg, VA, where he works with high wealth individuals and mid- to large-size companies focusing on tax controversy and complex tax issues. In addition, Nicholas is an adjunct professor at the University of Mary Washington. Nicholas has been published in the AICPA’s Journal of Accountancy and Tax Adviser, and in CCH’s Journal of Tax Practice and Procedure. He co-authored the textbook Tax Preparer Penalties and Circular 230 Enforcement, published by Thomson Reuters. Nicholas was named one of the VSCPA’s Top 5 Under 35 in 2017. Prior to joining private practice, Nicholas started his career as an IRS Revenue Agent. He later joined the IRS Office of Professional Responsibility as an enforcement attorney. While at OPR, he was the lead attorney on several milestone cases such as Gass and Pezzo. Nicholas is a graduate of Carthage College, degree in Accounting and Business; he has also earned a Master of Science in Accounting from the University of Connecticut, his JD from Case Western Reserve University, and his LLM in Taxation from Georgetown University.
Non-Member Price $130
Member Price $105