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

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

Prerequisites

Basic working knowledge of business and partnership taxation

Designed For

CPAs in public practice and industry seeking an update on the latest tax developments impacting partnerships and LLCs

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

Preparation

None