PS: Sales & Exchanges of an Interest in a Partnership

General Description:

The Partnership Series is taught on a basic level for new tax professionals. The participant will gain an understanding of the rules that apply to the sale or exchange of an interest in a partnership, including the wisdom of advising a partnership to make a §754 election.

Learning Objective:

After completing this course the participant will be able to:

• Determine the character of gain or loss, including ordinary income (loss) and capital gain (loss) and how to report on the Form 1065.
• Determine the tax effect on the partnership if a partner disposes of its interest.
• Determine the tax effect to the selling partner.
• Distinguish between inside and outside basis.
• Describe how to make a §754 election and how the §754 election affects the tax basis capital account.
• File Form 8308, including Schedule K-1, Line 20(AB), Line 20(AC), and Line10(AD), and Form 8594.
• Determine how to treat partnership debt on the sale or exchange.
• Determine how to allocate the basis adjustment among the assets of the partnership if a §754 election is in effect.
• Apply the 3.8% Medicare tax to the sale of an interest in a partnership.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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