Event Description

As a practitioner, you know that sometimes small business owners make little distinction between their own pocketbook and the company’s pocketbook. For this reason, distributions from smaller partnerships can be frequent. It is important for us, as their advisors, to know what the tax impact is for these distributions – which ones will be fine, and which ones may cause a problem. Through easy-to-follow examples, we will talk about distributions front to back. We will discuss the different types of distributions, as well as cash, property, and hybrid distributions – when you have a little bit of both!

Objectives

List the key rules of the 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.