Section 704(c): Contributions of Appreciated or Depreciated Property to Partnerships and LLCs

Navigating Complex Allocation Rules, Curative and Remedial Allocations, Elections, and Anti-Abuse Rules

A live 110-minute CPE webinar with interactive Q&A


Thursday, May 25, 2017
1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, May 5, 2017


This CLE/CPE webinar will provide tax advisers with a thorough and practical guide to navigating the complex requirements of Section 704(c). The panel will go in depth to identify contributed property subject to Section 704(c), and will discuss available elections to allocate gain and loss.

Description

Whenever a partner contributes appreciated or depreciated property to an entity treated as a partnership for U.S. federal tax purposes, Section 704(c) applies. Section 704(c) operates to prevent the shifting of tax liabilities associated with built-in gains and losses among/between partners when a partner contributes property that has a fair market value different from the basis the partnership takes in the contributed property.

These rules are flexible by design but raise a host of complicated decisions for tax advisers. Advisers must consider Section 704(c) tax consequences when reviewing partnership agreements and preparing partnership returns to ensure that gain and loss are properly allocated.

Section 704(c) provides elective methods for allocations to address inequities in allocating gain or loss from appreciated or depreciated property. However, these elections are limited by anti-abuse rules found in the Section 704(c) regulations. Tax advisers must know the available elections and limitations to avoid costly tax consequences.

Listen as our panel of experienced tax practitioners provides a thorough and practical guide to the rules of Section 704(c) governing partners’ contributions of appreciated or depreciated property.

Outline

  1. Key aspects of Section 704(c)
    1. Sharing of income, gain, loss or deduction for property contributed must take account of variations between basis and fair market value at contribution
    2. Broad authority given to Treasury and IRS to determine how allocations should be made
    3. Navigating complex questions about built-in gain or loss property contributed to partnership
    4. Book v. Tax Basis
    5. The “Ceiling Rule”
  2. Traditional, curative and remedial allocation methods
  3. Revaluations
  4. Mixing bowl rules
  5. Anti-abuse rules

Benefits

The panel will review these and other key issues:

  • Reviewing partnership agreements and other operating documents based on Section 704(c) considerations
  • Making choices among the allocation method elections
  • Whether and when revaluations are appropriate or required

Learning Objectives

After completing this course, you will be able to:

  • Identify property contribution transactions that fall under the rules of Section 704(c)
  • Distinguish the specific types of allocations allowed under Section 704(c)
  • Select specific drafting language to preserve flexibility in operating documents

Faculty

Jennifer A. O'Leary, Partner
Pepper Hamilton, Philadelphia

Ms. O'Leary is a partner in her firm's Tax Practice Group. She focuses her practice on the federal income tax aspects of pass-throughs, private investment funds, domestic and international mergers and acquisitions, dispositions, corporate tax restructuring, debt restructuring, regulated investment companies and real estate investments trusts.

Paul Schockett, Counsel
Skadden Arps Slate Meagher & Flom, Washington, D.C.

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.

Matthew J. Donnelly, Esq.
Skadden Arps Slate Meagher & Flom, Washington, D.C.

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.

Anna Blair, Esq.
Wick Phillips Gould & Martin, Fort Worth, Texas

Ms. Blair advises clients on federal income tax and Texas state tax planning applicable to partnerships, limited liability companies, S corporations, and privately and publicly held corporations. Her experience includes the formation, operation and dissolution of closely held corporations, partnerships, limited liability companies and S corporations. She has also advised clients regarding federal income tax planning for various business entities, including counsel on tax aspects of taxable and tax-free mergers, acquisitions, reorganizations and dispositions, equity and debt offerings and real estate transactions; she has particular experience in the areas of partnership and oil and gas taxation.


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 $97.00

Includes Early Discount Savings of $50.00 (through 05/05/17)

Live Webinar & CPE Processing $132.00

Includes Live Webinar Early Discount Savings of $50.00 (through 05/05/17)


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, drafting complex partnership agreements and schedules, supervising other attorneys or tax advisers. Specific knowledge and understanding of partnership structure, operating agreements and liquidation, including partner capital accounts, allocation and distributions; familiarity with the economic effect test; safe-harbor and non-safe harbor partnership agreements according to IRC 704.

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.


Recordings

Recorded Event

Includes full event recording plus handouts (available after live webinar).

Note: Self-study CPE and EA credits are not offered on recorded events.

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Recorded Audio Download (MP3) $97.00
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DVD (Slide Presentation with Audio) $97.00 plus $9.45 S&H
Available ten business days after the live event

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Registration Plus Recorded Event

Best value!

Live Webinar & Webinar Download $144.00

Includes Special Savings of $150.00 (through 05/05/17)

Live Webinar & Audio Download $144.00

Includes Special Savings of $150.00 (through 05/05/17)

Live Webinar & DVD $144.00 plus $9.45 S&H

Includes Special Savings of $150.00 (through 05/05/17)


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IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Early Registration
Discount Deadline
May 5, 2017
(11 days)

or call 1-800-926-7926

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