Course Description: This is an advanced course covering the rules when a partner receives a distribution of cash or other property from a partnership. This course deals with the rules governing both current and liquidating distributions. A current distribution is one made to a partner whose interest in the partnership continues after the distribution. A liquidating distribution is one in which the distribution terminates the partner’s interest in the partnership. This course examines when gain or loss is recognized, basis adjustments of property, and elections to basis adjustments that prevent disparities between inside basis (partnership’s basis in its assets) and outside basis (partner’s basis in the partner’s partnership interest) whenever a partnership distributions is made. 

Course Level: Advanced

Course Prerequisites: None

Delivery Method: Self-study

After completing this course you will: 

• Know the rules for recognition of gain or loss upon a current or liquidating distribution; 
• Be able to determine the basis and holding period for distributed property; 
• Be able to determine the basis of a partner’s interest in a partnership after a distribution;
• Understand the rules for gain or loss recognition when a partnership distributes contributed property to a noncontributing partner; 
• Understand the tax consequences when a distribution of property is made to a partner that previously contributed built-in-gain property; 
• Understand the disproportionate distribution rules and be able to apply them, 
• Know why special basis adjustments to partnership assets (§734(b) adjustments) exist and how to apply the rules for such adjustments; and 
• Know why basis adjustments for new partners (§743(b) adjustments) exist and how to apply the rules for such adjustments.

CPE

4.5

CLE

N/A