WF000926: Don Farmer’s Partnership Basis Deep Dive: Inside vs. Outside Basis

Description

This course provides an in-depth examination of partnership basis concepts, focusing on the distinction and interaction between inside and outside basis. Participants will analyze contributions, allocations, distributions, liabilities, and basis adjustments that commonly lead to reporting errors. Emphasis is placed on reconciling partner capital accounts, K-1 reporting, and tax basis schedules.

MAJOR TOPICS
* Partnership basis concepts discussing the technical distinction between inside basis and outside basis and their role in partnership taxation
* Calculation of initial and adjusted outside basis for partner contributions of cash, property, and liabilities
* Impact of partnership allocations, distributions, and IRC §752 liability allocations on partner basis
* Basis adjustments and reporting risks
* Application of basis rules to loss deductibility and gain recognition on distributions
* Reconciliation of partner capital accounts to tax basis schedules for compliance and planning purposes

Objective

* Differentiate inside basis from outside basis and explain their tax significance * Calculate partner basis adjustments for contributions, distributions, and liabilities * Identify common basis errors in partnership reporting * Analyze how basis impacts loss deductibility and gain recognition * Reconcile capital accounts to tax basis for compliance and planning purposes

Advanced Preparation

None

Required Knowledge

Participants should have a working knowledge of partnership taxation, including capital accounts, allocations, and basic basis calculations, along with experience preparing or reviewing partnership returns and Schedule K-1s in accordance with Internal Revenue Service guidance.

Who Should Attend

CPAs and accounting professionals

Credit Types

CPE – Taxes