The Section 754 Election and Related Adjustments to Inside Basis of Partnership Assets (754E)

Tax practitioners can find the Section 754 election and related adjustments particularly challenging from a technical perspective. This program discusses when and how to make the Section 754 election and the mechanics for adjusting the inside basis of assets under Sections 734(b) and 743(b). The course will focus on how the Section 754 election works in the context of a business sale/acquisition and discuss the adjustments that follow upon the distribution of partnership property.

• Purpose of a Section 754 election inside and outside basis
• How to make a Section 754 election
• Asking the IRS to revoke a Section 754 election
• When a Section 754 election is economically advantageous
• Mechanics of Section 743(b) and 734(b) adjustments
• Journal entries relating to Section 743(b) and 734(b) adjustments
• Positive and negative basis adjustments