IRC §751 (Hot Assets)
Author: A.J. Reynolds
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
When a partner starts the negotiation process to sell their interest, they may not consider the tax treatment of Hot Assets. These Hot Assets are business assets, that if sold have the potential to create ordinary income.
This course will provide a useful overview of techniques to assist the tax professional in assisting their clients who sell partnership interests.
Ensure that we do not, as tax advisors, assume that equally situated taxpayers will be treated similarly by the Tax Code.
Publication Date: February 2025
Topics Covered
- A useful overview of techniques to assist tax professional in assisting clients who sell partnership interests
- Distinguish categories of Hot Assets
- The three steps necessary to be calculated on every calculation regarding §751
- Disclosures
- Form 8308
- Examples on the mechanics of IRC §751 transactions
Learning Objectives
- Identify how to distinguish the categories of Hot Assets
- Identify how to extrapolate issues skulking in the tax code that can emerge & cause tax agony for our clients
- Identify why similar types of entities do not always have the same tax results
- Identify the type of income Hot Assets have the potential to be
- Identify the two main examples of Hot Assets
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
