Taxation of Partnership Distributions and Sales of Partnership Interests (TXPD)

Ian J. Redpath, JD, LL.M, Robert C. Lickwar, CPA, Lance G. Weiss, CPA, CVA, Michael J. Tucker, J.D., CPA (moderator)
  • 3
  • Basic
  • Taxes

Individual course: $99
Best Value: All-Star Tax Season Pass
Volume Discounts: 
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Calculating gain or loss on partnership distributions and sales can be complex. Generally, gain on sale of partnership interest receives favorable capital gain treatment, except to the extent that a sale is attributable to the selling partner’s share of the “hot assets.” A partner will not always recognize gain or loss on a distribution, as there are important exceptions when gain or loss is not recognized.  This program provides an understanding of the applicable rules and exceptions for taxation of partnership sales and distributions so tax practitioners can advise partner and partnership clients.

Major Topics:

  • Determination of a taxpayer’s basis in a partnership interest
  • When gain or loss is recognized on a partnership distribution
  • Taxation of an in-kind partnership distribution
  • Tax consequences of a sale or liquidation of a partnership distribution
  • What a partnership’s “hot assets” are and how they are taxed when sold
  • When losses may be recognized on a partnership distribution
  • Partner basis in property distributed by a partnership
  • Current versus liquidating partnership distributions

Learning Objectives

  • Understand the tax rules relating to sales of a partnership interest and partnership distributions

Tax practitioners who anticipate advising clients with respect to the sale of a partnership interest and/or partnership distributions

A basic understanding of the tax rules relating to individual income tax




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