Course ID: UPT

Understanding Partnership Taxation – Basis & Contributions

Calculating partnership basis is one of the most important things that we do as practitioners. However, it is also one of the most confusing. When we use the term basis, we really could be referring to one of three different things! This course will explore the differences between inside basis, outside basis, and 704(b) basis. Through several examples and practice problems, we will show you how to easily distinguish between these terms. We will also explore the tax implications of initial contributions of property to a partnership.

Learning Objectives

After completing this course, you will be able to:
•Calculate Inside Basis, Outside Basis, and 704(b) Basis
•Identify the concept of Substantial Economic Effect
•Choose the three requirements that need to be present for an allocation to be deemed to have Economic Effect
•Calculate the reallocation of items of gains and loss under IRC 704(b) when a qualified income offset is present
•Analyze the tax effects of transferring cash, property, and services to a partnership
•Distinguish the tax effects of contributing assets to a partnership that are encumbered by debt

Major Topics
  • Three Different Types of Basis
  • Contributions of Property – In General
  • IRC 704(b) Capital Accounts & Special Allocations
  • Contributions of Property & Debt
  • Contributions of Services
  • IRS Notice 2020-43

Who Should Attend

Tax practitioners who are looking to improve their knowledge of basis types, the calculation of basis, and the implications of making contributions to a partnership.

Fields of Study


Working knowledge of fundamental partnership tax concepts

Business Learning Institute

CPE Credits


This course is available for your group as:


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