DESCRIPTION

This module explores the tax issues involved when a partner sells or otherwise disposes of his partnership interest. Special emphasis is given to the effect hot assets have in calculating the gain or loss on the sale. Also discussed are the tax effects of structuring a transfer as a sale or redemption. The module includes a series of short exercises and a case study.

LEARNING OBJECTIVES

  • Differentiate between a sale and redemption of a partnership interest.
  • Calculate the gain or loss on the sale of a partnership interest.
  • Analyze the effect hot assets have when selling a partnership interest.
  • Discuss the taxability of payments to a retiring partner.

Prerequisites

4+ Years Professional Experience

Advanced Preparation

None

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