IRC Section 754: Partnership and Pass-Through Entity Basis Adjustments

Mastering Election Rules and Tackling Complex Decisions for Distributions From Partnerships and Sales of Partnership Interests

Recording of a 110-minute CPE webinar with Q&A

Conducted on Tuesday, August 22, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide tax advisers and counsel with an in-depth analysis of the Section 754 election. The panel will outline best practices for making the Section 754 election, tax implications of the election, and when to make—and when to avoid—the election.


Section 754 is a complex and critical part of the Code for advisers and tax attorneys involved in partnership tax matters. Section 754 governs an election that allows the partnership to adjust the basis of its assets under certain circumstances.

Our panel will share their experiences and offer best practices to help you understand, identify and avoid missing Section 754 election opportunities. You will hone your knowledge through our panelists’ real world examples about the potential benefits and detriments of a Section 754 election.

Tax advisers and attorneys must understand not only the rules but also the practical hows, whys or “why-nots” involved in making a Section 754 election. Further, advisers need to be able to know how to perform the complicated adjustment calculations that the related basis adjustment provisions of Sections 734 and 743 require to track inside basis and depreciation to reach the proper reporting on partners’ individual Schedules K-1.

Listen as our panel of veteran advisers gives you a drill-down on Section 754 and related administrative guidance, translating it into the practical challenges that confront practitioners who work on complex partnership tax issues.



  1. Section 754 key points
    1. Section 754 overview
    2. Election decision process
      1. Reasons
      2. Evaluating implications
        1. Step-up
        2. Step-down
  2. Section 754 election
    1. Procedures
    2. Filing and notification requirements
  3. Common computation challenges with Sections 734(b) and 743(b) adjustments
  4. Allocations of basis adjustments under Section 755


The panel will review these and other key points:

  • How to make a proper Section 754 election, and the practical pros and cons
  • How to calculate the inside basis adjustments under Sections 734 and 743
  • How to allocate the basis adjustments under Section 755; and
  • How to avoid common basis adjustment mistakes in calculations and reporting


Lentine, William
William C. Lentine

Dykema Gossett

Mr. Lentine is experienced in corporate tax matters, partnership taxation, mergers & acquisitions and estate...  |  Read More

Wiesen, Dina A.
Dina A. Wiesen
Senior Manager, National Tax Office, Passthroughs
Deloitte Tax

Ms. Wiesen specializes in partnership taxation, specifically the use of partnerships and limited liability companies in...  |  Read More

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