There are no prerequisites.

Course Description

If you're looking for a comprehensive and hands-on guide to partnership taxation, look no further. This practical course examines tax issues relating to the formation and operation of partnerships. You will gain a familiarity with basic areas of partnership taxation so that you can recognize problem areas and find workable solutions. The materials are presented in four segments: (1) the formation of partnerships, (2) the basic day-to-day operations of partnerships, (3) distributions of assets to partners, and (4) the termination of partnership affairs.


Danny Santucci, JD

Danny Santucci, BA, JD, is a prolific author of tax and financial books and articles. His legal career started with the business and litigation firm of Edwards, Edwards, and Ashton. Later he joined the Century City entertainment firm of Bushkin, Gaims, Gaines, and Jonas working for many well-known celebrities. In 1980, Danny established the law firm of Santucci, Potter, and Leanders in Irvine, California. With increasing lecture and writing commitments, Danny went into sole practice in 1995. His practice emphasizes business taxation, real estate law, and estate planning. Speaking to more than 100 groups nationally each year, he is known for spicing up his extensive expertise with an incredible sense of humor.

Course Specifics

Nov 28, 2017
There are no prerequisites.

Compliance Information

IRS Provider #: 0MYXB
IRS Course ID: 0MYXB-T-00485-13-S
IRS Federal Tax Law Credits: 7
CTEC Provider #: 2071
CTEC Course ID: 2071-CE-0507
CTEC Federal Tax Law Credits: 7
Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Recognize what constitutes a partnership for federal income tax purposes under §761(a), including factors that determine partnership existence, the liability aspects of partners, applicable reporting requirements, and check-the-box regulations
  • Recognize the impact of partnership agreements on partners' shares of tax items, the requirements of §704(e) to family partnerships, and the pros and cons of partnerships in determining when the entity choice is appropriate
  • Identify the complete or partial exclusion from partnership treatment under §761

Chapter 2

  • Recognize the allocation of income and deductions among partners, when a partnership or its partners are subject to income or estimated tax, applicable self-employment taxes under §1402, and instances where partnerships are viewed as separate entities
  • Identify the types of separately stated partnership expenses and the character of such items, their deduction limitations, and the §704(d) outside basis limitation and its impact on losses
  • Recognize whether a partnership can elect to amortize certain business-related expenses, the key elements and requirements of the partnership tax return, and the items of deduction to which individuals are entitled
  • Identify a partnership's taxable year under §706(a) and the allocation of items of income and deductions from the partnership to the partners
  • Classify the treatment of transactions between a partner and a partnership

Chapter 3

  • Recognize the tax-free capitalization rules of §721 including the treatment of contributions, sales, exchanges, and transfers, the application of property taint rules, and methods of allocation for precontribution gain or loss
  • Determine a partnership's basis for contributed assets under §723 and the treatment of subsequent gains and losses under §724
  • Recognize the tax treatment and subsequent consequences of contributed services including strategies to avoid immediate taxation
  • Determine the original and adjusted basis of an interest acquired by contributing property and/or money
  • Recognize a partner's loss deduction when the limits on deductions of partnership losses apply

Chapter 4

  • Determine capital asset treatment on the sale or disposition of a partnership interest under §741
  • Recognize the tax treatment of a sale or exchange of a partnership interest where the partnership possesses hot assets, the characteristics of unrealized receivables and inventory, and which items qualify or fail to qualify as unrealized receivables
  • Recognize optional basis adjustment provisions and how they relate to the general rule for the inside basis after the transfer of a partnership interest, the tax consequences of making a gift of a partnership interest, and the unique treatment of partnership interests that are abandoned or foreclosed on with or without related liabilities

Chapter 5

  • Recognize the provisions, tax treatment, and impact of distributions of cash or property by a partnership to the partners

Chapter 6

  • Recognize the types of liquidating distributions, the treatment of cash distributions under §736, and the tax treatment of property distributions in liquidation permitting partnerships to distribute unrealized receivables or inventory
  • Identify a withdrawing partner's basis when there are distributions in liquidation or in nonliquidation, the requirements of a §754 election, and any additional required adjustments

Chapter 7

  • Recognize the taxation of limited liability companies, the variety of tax entity choices, and their advantages and disadvantages
  • Identify ways to use an LLC, business-planning opportunities, and business ventures that should avoid LLCs
  • Recognize the federal tax consequences of establishing an LLC, check-the-box regulations, self-employment tax regulations and their application, whether an LLC member is at risk for recourse debt, the treatment of debt discharge income, passive loss rules, appropriate method of accounting, and how an LLC can designate a tax matters partner for audit purposes
  • Identify the dangers and tax consequences in converting to an LLC from another form of entity, and the potential assessment of sales and use tax, real property taxes, and real property transfer taxes on entities on conversion to an LLC

Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

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