Tax Strategies for Partnerships Part 1: Formation, Purchase, and Sales of Partnership Interests (Completed)

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.

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
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None