Description
When a partner starts the negotiation process to sell their interest, they may not consider the tax treatment of hot assets. These hot assets are business assets that, if sold, have the potential to create ordinary income. This course delves into the intricacies of §751 hot asset rules, teaching tax professionals how to identify and handle hot assets effectively. Gain a deeper understanding of the categories of hot assets, the critical calculation steps and the hidden tax pitfalls that can arise.
Learning Objectives
Upon completion of this session, you will be able to:
--Distinguish the categories of hot assets
--Analyze the three steps to calculate ordinary income due to hot asset rules
--Extrapolate issues skulking in the tax code that can surface and cause financial pain to our clients
--Interpret why similar types of entities do not always result in the same tax situations