Navigate complex partnership tax elections and avoid double-taxation traps when selling interests.
Partnership tax law is always difficult. However, when certain transactions occur, not knowing how to handle them can be costly to clients and practitioners. In this course, we discuss several of these types of situations. We will explore the tax impacts of a pass-through entity (PTE) election and how a 754 election affects the inside basis of partnership assets. We then examine those tricky look-through provisions on the sale of a partnership interest in order to properly calculate the tax implications of the sale.
The coursework further unpacks the complexities of Section 754 elections, detailing the precise rules for adjusting the inside basis of partnership property. By understanding the triggers and calculations for step-up or step-down basis adjustments under Sections 734 and 743, professionals can better protect clients from asymmetrical tax consequences and double taxation. Finally, the course provides an in-depth analysis of the tax ramifications surrounding the sale or exchange of a partnership interest. This includes navigating the allocation of capital gains versus ordinary income, understanding the critical role of "hot assets" under Section 751, and managing the resulting reporting requirements. This overview is designed to deliver the strategic insight necessary to effectively advise clients and ensure compliance through high-stakes partnership tax scenarios.
Who Should Attend:
Tax and financial advisors who have partnership clients
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.
