Course Description: This basic course provides an overview of the federal income tax consequences to the entities involved in the partnerships relationship upon the sale or termination of a partnership interest.
Relative to the selling partner, the course discusses:
• the amount, character, and holding period (including split period) of gain or loss;
• the collapsible partnership rule;
• installment sales of partnership interests; and
• the varying interest rule.
For the purchasing partner, the course discusses:
• outside basis; and
• capital accounts.
Under the partnership, as an entity distinct from its owners, the course discusses:
• inside basis;
• the I.R.C. §754 election;
• revocations; and
• technical terminations.
Course Prerequisites: None
Delivery Method: Self-study
After completing this course, you will:
• understand how to determine the amount of a selling partner’s gain or loss;
• understand the timing and effects of applying the collapsible partnership rule;
• understand when a partner has a divided holding period in a partnership;
• know when a partner may use the installment method to sell a partnership interest;
• know when to apply the varying interest rule;
• know the difference between inside and outside basis;
• understand the I.R.C. §754 election;
• know how to determine capital accounts; and
• understand technical terminations.