Three different types of basis Contributions of property IRC 704(b) – Capital Accounts and Special Allocations Contributions of property and debt Contributions of services IRS Notice 2020-43
Learning Objectives
Calculate inside basis, outside basis, and 704(b) basis Recognize the concept of substantial economic effect List the three requirements that need to be present for an allocation to be deemed to have economic effect Calculate the reallocation of items of gains and loss under IRC 704(b) when a qualified income offset is present Recognize the tax effects of transferring cash, property, and services to a partnership Recall the tax effects of contributing assets that are encumbered by debt to a partnership List the key rules of thumb to remember when dealing with distributions State the ordering rules for calculating a partner’s tax basis Describe the key differences between liquidating and non-liquidating distributions Determine any applicable tax gains and losses of cash and property distributions State the ordering rules for hybrid distributions that involve both cash and property
Major Topics
Three different types of basis Contributions of property IRC 704(b) – Capital Accounts and Special Allocations Contributions of property and debt Contributions of services IRS Notice 2020-43
