Basis for Partners Self-Study

Summary

Partnership outside basis is important because it dictates the investment each partner holds in the partnership. This, in turn, dictates how much a partner can receive in distributions or take as a loss deduction without incurring additional tax liabilities or loss limitations. A partner’s outside basis changes as time goes by. Each year, a partner’s outside basis increases or decreases based upon the operations of the partnership. This course discusses the components of basis and how to calculate the partner’s outside partnership basis and the inside basis of partnership assets. An example will be provided and utilized to illustrate the concepts.

Objectives

Upon completion of this course, you will be able to:

• Recognize items that increase or decrease a partner’s basis in a partnership
• Differentiate between inside and outside partnership basis
• Determine whether distributions are taxable to the partner

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.