Navigate the complexities of cash and property distributions without triggering unexpected tax consequences.
As a practitioner, you know that sometimes small business owners make little distinction between their own pocketbook and the company’s pocketbook. For this reason, distributions from smaller partnerships can be frequent. It is important for us, as their advisors, to know what the tax impact is for these distributions—which ones will be fine, and which ones may cause a problem. Through easy-to-follow examples, we will talk about distributions front to back. We will discuss the different types of distributions, as well as cash, property, and hybrid distributions—when you have a little bit of both!
The curriculum covers the fundamental mechanics of how cash and property distributions impact a partner's inside and outside basis, the specific triggers for recognizing gain or loss, and the specialized tax treatment of marketable securities. Furthermore, the material delves into the complexities of disproportionate distributions, the nuances of Section 751 "hot assets," and the critical differences between proportionate and disproportionate scenarios. By unpacking these highly technical areas of Subchapter K, this overview provides the essential framework needed to accurately analyze, report, and manage partnership distributions while maintaining compliance with current tax regulations.
Who Should Attend:
Tax practitioners who are looking to improve their knowledge of distributions and how they affect a partner’s tax basis.
CPA, CFP, CLU, CPCU, MST, MBA
David Peters is the Founder and Owner of Peters Professional Education in Richmond, VA. He is registered with the U.S. Securities and Exchange Commission (SEC) as an Investment Advisor Representative (IAR) with Peters Financial LLC. He brings over 20 years of experience in financial services, including three years in the hedge fund industry and six years in insurance. David was the first Chief Financial Officer of Compare.com, where he served for more than three years. He holds four master’s degrees, contributes frequently to professional publications, and is a nationally recognized CPE instructor and discussion leader for Surgent seminars and a former instructor for Don Farmer. David received the AICPA Outstanding Facilitator Award in 2021, 2023, and 2024 as well as Surgent's Outstanding Discussion Leader awards in 2019 and 2022. He also co-authored the Virginia CPA Ethics course in 2018, 2019, and 2020, which is a requirement for all CPAs licensed in Virginia. Through Peters Professional Education, David is the author and instructor for over 125 recorded on-demand CPE courses and leads private trainings, in-person tax seminars, and quarterly live tax update webinars. His areas of instruction include accounting, finance, insurance, financial planning, and ethics, and he regularly teaches professionals across the United States.
