Partnerships: How to Calculate Partner Basis

Overview

This program provides a detailed analysis of the calculations related to determining tax basis for a partnership interest. Illustrated examples with filled in forms will demonstrate how the processes works and their many potential pitfalls. 

*Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

Objectives

• Apply the latest tax provisions related to LLC members/partners basis from formation through operations and sale/liquidation
• Identify the use of both "inside" and "outside" basis determination
• Identify planning strategies and potential pitfalls

Highlights

• Calculation of basis when the entity is formed, including the impact of contributed property
• How to calculate partnership tax basis capital accounts
• Explains the use of both "inside" and "outside" basis determination
• Clarifies the how partnership debt impacts tax basis
• Discusses how distributions affect basis
• Explains how basis is impacted by sale and/or liquidation of the partnership interest
• Comprehensive examples to illustrate the mechanics of the basis determination process