Partnership and Partner Elections

Free CPA TCP (Tax Compliance & Planning) lesson in Entity Tax Compliance. 16 min read, ~2,371 words.

Partnerships must use a required tax year (majority interest → principal partners → least aggregate deferral) unless they elect §444 and make required payments. The §754 election is irrevocable once made and triggers basis adjustments under both §743(b) (transfers) and §734(b) (distributions). §743(b) adjusts inside basis when a partner buys...