Partnership Section 754 Election
Author: Jane Ryder
| 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
This course discusses valuable tax opportunities available when making a section 754 election, plus subsequent compliance obligations once the election has been made. We’ll review how to make the 754 elections, the tax effect of making a 754 election, and specific cases in which it may not be advisable to make the election, including cases when assets may have depreciated. We will also discuss both Section 743(b) adjustments and Section 734(b) adjustments related to section 754 elections, new federal reporting requirements for 754 elections, and how a 754 election affects partner capital accounts.
Publication Date: August 2025
Topics Covered
- Section 754 elections
- Partnerships
- Section 743(b) and 734(b) adjustments
- Depreciation
- Capital accounts
- Inherited partnership interests
Learning Objectives
- Determine the correct amount of a Section 754 basis step-up
- Explain allocating the basis step-up to partnership's assets
- Explain how to correctly report 754 elections for partnerships and partners
- Explain how to correctly allocate applicable depreciation to applicable partners
- Explain section 743(b) and 734(b) adjustments
- Identify how to advise clients related to section 754 elections
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
