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

Robert C. Lickwar, CPA, Ian J. Redpath, Esq., Lance G. Weiss, CPA, CVA, Michael J. Tucker, JD, CPA (moderator)
  • 3
  • Intermediate
  • Taxes

Individual course: $99
Best Value: All-Star Tax Season Pass
Volume Discounts: Click here for details.

Overview

Tax practitioners can find the Section 754 election and related adjustments that follow upon them to be very challenging from a technical perspective. This program discusses when and how to make the 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 754 election works in the context of a business sale/acquisition; and also discuss the adjustments that follow upon the distribution of partnership property. 

Major Topics:

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

Learning Objectives

  • Understand the complex Section 754 election
  • Advise clients as to when and how to make this election

Any tax practitioner advising clients with respect to when and how to make a Section 754 election

A basic understanding of the tax rules impacting individuals and pass-through entities

None

Yes

Yes

Varies by state. Check back soon for details