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;

• depreciation; 

• 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.

CPE

2

CLE

N/A