Event Description

Partnership distributions of cash to the partners are generally straightforward to handle. However, when partnerships begin to distribute property, things can get tough! When do we need to recognize gain? What type of gain do we recognize? When does a disproportionate distribution result in ordinary income? And what about 704(c)? When these situations come up, we want to be able to recognize them. In this course, we will be discussing these less common scenarios through easy-to-follow examples, so that you can better serve your clients and plan appropriately.

Objectives

• Identify the elements necessary to obtain favorable tax treatment upon the contribution and distribution of property.
• State when a disproportionate distribution would result in gain recognition by a partner.
• Recognize when Form 7217 must be filed.
• Identify elements of basis shifting and the effect of Notice 2025-23.