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Partnership Taxation (Course Id 325)

QAS / Registry / EA   Add to Cart 
Author : Danny C Santucci, JD
Status : Production
CPE Credits : 24.0
IRS Credits : 24
Price : $145.95
Passing Score : 70%
Course Type: NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents
Primary Subject-Field Of Study:

Taxes - Taxes for Course Id 325

Description :

The program will examine tax issues relating to the formation and operation of part-nerships. Participants will gain a familiarity with basic areas of partnership taxation so as to recognize a problem and have at hand some practical knowledge for its solu-tion. This course is presented in four practical segments: (1) the formation of partnerships, (2) the basic day-to-day operations of partnerships, (3) distributions of assets to partners, and (4) the termination of partnership affairs.

Usage Rank : 0
Release : 2020
Version : 1.0
Prerequisites : General understanding of federal income taxation.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : QAS Self Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 23-Jul-2020
NASBA Course Declaration : Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.
Approved Audience :

NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents - 325

Keywords : Taxes, Partnership, Taxation, cpe, cpa, online course
Learning Objectives :
    To view Learning Objectives, please Click here.
Course Contents :

Chapter 1 - Introduction

Definition of Partnership

Section 761(a)


Husband-Wife Partnerships

Election for Husband & Wife Unincorporated Businesses

Qualified Joint Venture

Making the Election


Limited Partnerships

Taxed as corporations



Centralized management


Limited Liability

Ruling Policies

Corporate General Partner

Tax Shelters

Check-the-Box Regulations


Definition of Trade or Business

Joint Ventures

Investment Clubs

Partnership Agreement


Partner’s Share of Tax Items

Limited Partners

Family Partnerships - §704(e)

Capital Partnerships

Gifts & Interfamily Sales

Bipartisan Budget Act of 2015

Material Use of Capital

Minor Children as Partners

Non-Capital Partnerships

Publicly Traded Partnerships - §7704




Exclusion from Partnership Treatment - §761

Complete Exclusion Election

Partial Exclusion Election

Loss & Year Limitations

Changing the Choice

Chapter 2 - Partnership Income

Partners Taxed as Individuals

Self-Employment Tax

Proposed Amendments to Limited Partner Regs


Exception - Separate Entity for Some Purposes

Individual Returns & K-1s

Partnership Expenses Paid By a Partner

Separately Treated Items

Character of Items & Limitations

Deduction of Losses

Outside Basis Limitation - §704(d)

Loss Ultimately Deductible

Effect of Losses on Outside Basis - §705

Partnership Tax Return

Organization & Syndication Fees - §709

Capitalized Syndication Fees

Business Start-up Costs - §195


Filing Requirements

Due Date of Return

Failure to File

Failure to Furnish Copies to Partners

Special Allocations - §704(b)

Economic Effect

“Substantial Effect”

Year Taxable - §706(a)

Limitation on Choice of Taxable Year

Required Tax Year

Business Purpose - §706(b)

Rev. Proc. 87-32

Highest Average Requirement

47-Month Exclusion


Form 1128

Section 444 Election

Limitations on Changing a Tax Year

Making the Election - Form 8716

Back-Up Election

Required Payment

When to File

Termination of Election

Closing of Partnership Year

Events That Terminate Partnership - §708(b)

Discontinuance of Business

Winding Up

Sale of 50% or More Interest Technical Termination Repealed

Events That Do Not Close the Year - §706(c)

Sale of Individual Partner’s Interest

Death of Partner

Buy/Sell Exception

Change for Closing of Partnership Taxable Year

Admission of New Partners - §706(d)

Allocation Techniques

Daily Allocation Required for Cash Items

Treating Partner as Stranger - §707(a)

Payments by Accrual Basis Partnership to Cash Basis Partner

Guaranteed Payments - §707(c)


Prepaid & Capital Expenses - §707(c)

Organization & Syndication Expenses - §709

Guaranteed Minimum

Year Taxed - §706(a)

Salary vs. Distribution

Stranger Payment vs. Guaranteed Payment

Payments Resulting in Loss

Recipient of Salary as an “Employee”


Accident & Health Insurance Premiums

Certain Losses Disallowed - §707(b)

Two Partnerships

Constructive Ownership

Sales at Gain

Chapter 3 - Contributions to Partnerships

Contributions of Property - §721

Contribution vs. Sale or Exchange

Disguised Sale - §707(a)

Disguised Taxable Exchanges - §704 & §737

Precontribution Gain or Loss Property

Property Distribution to Contributing Partner - §737

Anti-Abuse Rules Under §737

Contributed Property Distribution to Another Partner - §704(c)

Seven Year Period (Formerly Five)

Allocation Methods for Precontribution Gain or Loss

Transfers to Investment Company Type Partnerships - §721(b)

Contributed Assets Inside (Partnership) Basis - §723

Allocations as to Contributed Property - §704(c)


Earlier Optional Application of §704(c)

Character of Subsequent Gain

Taint On Contribution - §724

Character of Subsequent Loss - §724(c)

Contribution of Services

Basis of Partner’s Interest - Outside Basis

Original Basis - §722

Adjustments to Basis

Effect of Liabilities - §752

Deemed Distribution & Contribution

Special Rule for Liabilities of Cash Basis Partnership

Partner’s Share of Partnership Liabilities

Limited partnerships



Limits on Deduction of Partnership Losses

At-Risk Rule - §465


Exception for Real Estate Loans

Qualified Persons

Definition of Amounts At-Risk

Passive Losses - §469

Three Buckets

Material Participation



Suspended Losses

Fully Taxable Disposition

Rental Real Estate Losses

Application to Corporations

Chapter 4 - Sales & Exchanges of Partnership Interests

Capital Asset Treatment - §741

Corn Products Rule

Importance of Capital Treatment

Regs on Gain on Sale of Passthrough Entities - §1(H)

Exchanges & Transfers

Like-Kind Exchanges - §1031

Transfers to Controlled Corporations - §351

Partner’s Interest Basis

Incorporation Methods

Hot Assets - §751

Unrealized Receivables

Depreciation Recapture


“Inventory Items”

“Substantial Appreciation”

Elimination of Substantial Requirement

Basis of §751 Property

Tax Reporting & Notification


Liabilities of Partnership

Inside Basis after Transfer of Partnership Interest

General Rule - §743(a)

Special Inside Basis Adjustment - §754 & §743(b)

Allocation of Basis - §755

Death of Partner

Basis Exception

Permanency of Election



Abandonment or Forfeiture

Chapter 5 - Partnership Distributions

General Nonrecognition Rule - §731

Exceptions to General Rule

Basis Adjustments

Partner’s Interest - §733

Property Received - §732

Nonliquidating Distribution

Basis Limitation - §732(a)

Liquidating or Complete Distribution

Allocation of Basis When Limited - §732(c)

Partnership’s Basis Greater Than Partner’s Basis

Partner’s Basis Greater Than Partnership’s Basis

Special Adjustment to Basis

Mandatory Application

Holding Period - §735

Partnership Property - §754 & §734

Basis Allocation on Properties Distributed By a Partnership

Distributions of Receivables or Inventory

Proportionate Distributions

Subsequent Disposition Rule

Disproportionate Distribution - §751(b)

Asset Allocation

Gain or Loss

Upon Distribution

On Subsequent Sale

Basis for Property Received in Disproportionate Distribution



Chapter 6 - Partnership Liquidations

Flexible Treatment

Types of Liquidating Distributions

Liquidating Distributions of Money

Section 736(a) Payments

Section 736(b) Payments


Exclusions From §736(b) Treatment


Series of Payments

Contingent Payments

Distributions of Property in Liquidation

Distributions of Unrealized Receivables or Inventory

Liquidating Disproportionate Distributions

Basis of Distributed Property

Gain or Loss Recognition

Basis Adjustment after Distributions

Election - §754

Additional Adjustments Required by §734

Chapter 7 - Limited Liability Companies


Check-the-Box Regulations

LLC Benefits

Advantages of LLCs over C Corporation

Double Tax

Basis Adjustment

Special Allocations



Unreasonable Compensation

Non-Tax Benefits

Advantages of LLCs over S Corporations

Advantages of LLCs over Limited Partnerships

Outside Basis & Debt Share Advantage

Substantial Economic Effect Rules - §704(b)

Discharge of Indebtedness Income

Advantages of LLCs over General Partnerships



Professional Firms

Venture Capitalists

Leveraged Buyouts - LBO

Joint Venture

Corporations Filing Consolidated Returns

Foreign Investment

Real Estate Ventures

Charitable Investment

Estate Planning

Problem Uses

Federal Tax Consequences

Check-the-Box Regulations

Self-Employment Tax

Proposed Amendments to Limited Partner Regs - §1402


At-Risk Rules - §465

Debt Discharge Income

Passive Loss Rules - §469

Method of Accounting

Audit Procedures


Tax Matters Partner (TMP)


Additional Rules & Rights

Bipartisan Budget Act of 2015 Centralized System

Conversion of Partnership to LLC

Conversion of S Corporation to LLC

Conversion of C Corporation to LLC

Local Taxes on Conversion

Sales & Use Tax

Real Property Taxes

Real Property Transfer Taxes

Entity Comparison



CPE Taxes Course: https://www.cpethink.com/tax-cpa-courses
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