Course Description: The course will cover contributions of property in exchange for partnership interests, tax attributes of contributed property (basis, holding periods, depreciation, and capital accounts), and the proposed regulations on partnership options.

 Course Level: Basic 

 Course Prerequisites: None 

 Delivery Method: Self-study

At the end of this course, you will be able to: 

• Describe the rules governing contributions of property to a partnership, including the general nonrecognition rule on contributions, the exceptions to the nonrecognition rule, and the rules governing notes and installment obligations, intangible property, and encumbered property; 
• Explain the effects of contribution of property on a partner's basis, holding period, depreciation method, and recovery period; 
• Understand the need for two sets of books, and the capital account requirements upon admission of partners; and 
• Describe the 2003 proposed regulations on the tax consequences of issuing, transferring, and exercising a noncompensatory option (“NCO”), including the nonrecognition features of an exercise of an NCO to the issuing partnership or the NCO holder, the rules regarding the maintenance of the partners’ capital accounts and the determination of the partners’ distributive shares of partnership items, and when an NCO holders is treated as a partner.

CPE

2

CLE

N/A