Partnership Terminations: Mastering Section 708
Filing Short Year Returns, Revisiting Elections, Amortization Opportunities, Basis Adjustments and More
A live 110-minute CPE webinar with interactive Q&A
Wednesday, January 25, 2017 (in 6 days)
1:00pm-2:50pm EST, 10:00am-11:50am PST
This webinar will provide tax advisers with a comprehensive and practical guide to partnership terminations. The panel will discuss identifying termination events, election strategies, short-year reporting, and partner-specific considerations in reporting partnership terminations.
The tax treatment of a partnership termination is often challenging, especially when the termination is involuntary, whether due to insolvency or other cessation of operations, or to a “technical termination” arising from sales of 50% or more of the total partnership interests. Tax advisers responsible for preparing partnership tax returns need to have a practical understanding of the rules for reporting these involuntary terminations.
A partnership that undergoes a technical termination is deemed to have transferred its assets and liabilities from the “old” or terminated partnership to a deemed new partnership in exchange for an interest in that new partnership. The Treasury regulations governing Section 708 require technically terminated partnerships to file two separate short-year tax returns; the date of the technical termination and deemed transaction is the closing date of the legacy partnership and the opening date of the tax year for the new entity.
Section 708 technical terminations do provide partnerships the opportunity of deciding whether to continue certain irrevocable elections in the new entity. The new partnership may make a Section 754 election, or not, even if the prior partnership had made the election.
Listen as our experienced panel provides practical guidance on structuring partnership agreements and monitoring operations to avoid the costly consequence of a partnership technical termination.
- Identifying technical termination events under Section 708
- Deemed termination and transfer to new partnership
- Status of irrevocable elections made by previous partnership
- Short-year filing requirements for terminated and successor partnership
- Basis in assets subject to 743(b) adjustment in terminated partnership
- Penalties for failure to file
- Capital account carryover
- Reporting new elections
The panel will discuss these and other important issues:
- Short-year filing requirements for partnerships subject to technical termination rules
- Amortization of organizational or startup costs incurred after the ownership change event that caused the technical termination
- Evaluating whether to make a Section 754 election for “new” partnership after technical termination
- Basis calculations on assets in new partnership after a Section 708 termination
- Filing requirements for other involuntary partnership terminations
After completing this course, you will be able to:
- Identify events that trigger a technical termination of a partnership under Section 708
- Recognize the short-year filing requirements for technically terminated partnerships
- Determine the appropriate basis and capital account carryover treatment from terminated partnership to deemed new partnerships
- Decide under what circumstances successor partnerships to technically terminated partnerships should make new Section 754 elections
- Discern amortization opportunities and reporting treatment for organizational or other amortizable costs occurring as a result of the termination event
Matthew J. Donnelly, Esq.
Skadden Arps Slate Meagher & Flom,
Mr. Donnelly advises public and private companies on a broad range of domestic and international U.S. federal income tax issues, with particular focus on mergers, acquisitions, dispositions, joint ventures, debt and equity offerings, bankruptcy restructurings, transfer pricing, real estate investment trusts and tax-equity financings. He has significant experience with tax issues associated with related-party transactions.
Paul Schockett, Counsel
Skadden Arps Slate Meagher & Flom,
Mr. Schockett advises public and private companies on a broad range of U.S. federal income tax matters, with particular focus on U.S. and cross-border transactions. His practice includes significant work involving the tax aspects of partnership acquisitions and dispositions, joint venture and investment fund formations, and corporate mergers and acquisitions. He also advises clients with regard to the taxation of debt and equity financings, initial public offerings, bankruptcy restructurings and internal reorganizations. He frequently writes and lectures on tax-related topics, including partnership taxation, M&A transaction structuring, tax aspects of troubled company workouts, and renewable energy tax benefits.
Registration per Person for Live Event
Additional lines for this conference can be purchased at 25% off. For orders of five or more lines, further discounts will apply and will be automatically reflected in the cart.
Live Webinar $147.00
Live Webinar & CPE Processing $182.00
CPE per Person on Live Event
Continuing Professional Education credit processing is available for an additional fee. CPE processing must be ordered prior to the event. To qualify for CPE you may not listen via the telephone.
This program is eligible for 2.0 CPE credits.
- Field of Study: Taxes.
- Level of Knowledge: Intermediate.
- Advance Preparation: None.
- Teaching Method: Seminar/Lecture.
- Delivery Method: Group-Internet (via computer).
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of verification codes announced throughout the presentation.
- Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of partnership structure, operating agreements and liquidation, including partner capital accounts, allocation and distributions, and Section 754 election rules; familiarity with the technical termination rules of Section 708; familiarity with short year tax return preparation.
NOTE: CPE credit processing for all attendees must be ordered by 2pm Eastern the day of the program to receive a Certificate of Attendance within 24 hours.
Includes full event recording plus handouts (available after live webinar).
Note: Self-study CPE and EA credits are not offered on recorded events.
Recorded Webinar Download $147.00
Available 48 hours after the live event
Recorded Audio Download (MP3) $147.00
Available 24 hours after the live event
DVD (Slide Presentation with Audio) $147.00
plus $9.45 S&H
Available ten business days after the live event
Registration Plus Recorded Event
Live Webinar & Webinar Download $194.00
Recorded Webinar Download Only $47.00 with Registration/Webinar Combo
Live Webinar & Audio Download $194.00
Recorded Audio Download (MP3) Only $47.00 with Registration/MP3 Combo
Live Webinar & DVD $194.00 plus $9.45 S&H
DVD (Slide Presentation with Audio) Only $47.00 with Registration/DVD Combo
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Strafford is a NASBA CPE sponsor and our live webinars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.
Strafford is an IRS approved continuing education provider and this course is approved for 2 enrolled agent (EA) credit hours.
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