Course 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.

Learning 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.

Additional Required Materials

  • Level: Intermediate

  • Field of Study: Taxes (NASBA); Tax Planning (CFP); Federal Taxation (IRS)

  • Who Should Attend: Tax practitioners and financial advisors with partnership clients or clients who own partnerships.

  • Required Knowledge: Understanding of partner basis computation under Sec 705 and proportionate distribution rules.

  • Advanced Prep: None

Instructor

CPA, CPCU, MST, MBA David Peters

David Peters is the Founder and Owner of Peters Tax Preparation & Consulting in Richmond, VA. He has over fourteen years of experience in financial services, including 3 years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer at Compare.com - a position he held for over three years. He is a national CPE Instructor/Discussion Leader for the AICPA, Surgent, and Kaplan. He regularly teaches courses in accounting, finance, insurance, and ethics throughout the United States. He holds four Masters degrees and contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures. He was also a co-author of the 2018 Virginia CPA Ethics course – a required course for all CPA’s licensed in the Commonwealth of Virginia.