Tax Strategies for Partnerships Part 1: Formation, Purchase, and Sales of Partnership Interests
Author: Greg White
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Join expert Greg White, CPA, as he discuss tax strategies for minimizing gain when forming a partnership. He will also cover considerations in drafting a "mandatory tax distributions" provision so that your clients don't end up with "phantom income." You'll also learn how to maximize the tax effects of purchasing a partnership interest and selling a partnership interest.
Publication Date: May 2023
Designed For
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Topics Covered
- What business arrangements constitute a partnership for federal tax purposes
- And why is it crucial to understand this
- Partnership basis rules
- Using the "liability netting" rules to avoid gain on the formation of a new partnership
- Reduce the chances that your client will end up with "phantom income"
- Considerations in structuring a "mandatory tax distributions" provision
- Picking the best §704(c) allocation method for your client
- Computing bonus depreciation on partnership step-ups under §743
- Qualifying for a §199A deduction when your client sells their partnership interest
Learning Objectives
- Recognize how to protect your clients from phantom income based upon a mandatory tax distributions provision
- Identify which income qualifies for the §199A QBID when selling a partnership interest
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
