Course 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!

Learning 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

Additional Required Materials

  • Level: Intermediate

  • Field of Study: Taxes (NASBA); Characteristics and Income Taxation of Business Entities (CFP); Federal Taxation (IRS)

  • Who Should Attend: Tax practitioners who are looking to improve their knowledge of distributions and how they affect a partner’s tax basis

  • Required Knowledge: Working knowledge of fundamental partnership tax concepts

  • 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.