Partnerships: How to Calculate Partner Basis

Overview

A detailed analysis of the calculations related to determining a partner’s tax basis for a partnership interest. How to use the Form 1065 and Schedule K-1 information for basis determination will be reviewed. An illustrated example with filled in forms will demonstrate how the process works, including its many potential pitfalls. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics covered in this class include:

• How to calculate the basis when the entity is formed, including the impact of contributed property
• Explains the use of both "inside" and "outside" basis determination
• Clarifies the importance of partnership capital accounts and partnerships debt on partner's tax basis
• Comprehensive example to illustrate the mechanics of the basis determination process
• Explanation of how basis is impacted by distributions of partnership property and sale and/or liquidation of the partnership interest

Prerequisites

Basic working knowledge of partnership taxation.

Designed For

CPAs working in public accounting firms and/or working for partnerships.

Objectives

After attending this presentation you will be able to...

• Apply the latest tax provisions related to LLC members/partners basis from formation through operations and concluding with sale and/or liquidation
• Calculate tax basis capital accounts

Preparation

None

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by CPA Crossings. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.