Interested in training for your team? Click here to learn more

Section 751(a) & Updated Form 8308: Sales of Partnership interests & Character of Gain

A live 110-minute CPE webinar with interactive Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Wednesday, April 30, 2025

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, April 4, 2025

or call 1-800-926-7926
Add to your calendar

This webinar will review the definition of a Section 751(a) exchange and cover the complexities of completing the recently updated Form 8308, Report Sale of Exchange of Certain Partnership Interests. Our panel of partnership tax and federal income tax reporting veterans will explain which partnerships are subject to the new reporting requirements, outline the noncompliance penalties and penalty abatement procedures, and detail how to complete Parts I-IV.

Description

Recently revised Form 8308 is required to be filed by partnerships for sales or exchanges of partnership interests when the partnership holds Section 751(a) hot assets. Hot assets are those that would be subject to ordinary tax rates rather than capital gains treatment when realized. These include inventory and unrealized receivables. The partnership is required to file Form 8308 with its timely filed tax return and issue copies of the form to transferors and transferees.

Recently, the Treasury and IRS issued Notice 2025-2 extending the 2024 reporting deadline for certain information on the Form 8308 (part IV described below) from the later of Jan. 31, 2025, or 30 days after the partnership is notified of the transfer, to the later of the due date or extended due date of the partnership return or 30 days after the partnership receives notification of the transfer. However, the extension is only valid if Parts I-III of Form 8308 are provided to the transferor and transferee by the original deadline and the complete Form 8308 is furnished to the same by the deadline outlined in the notice.

Part IV of Form 8308 requires reporting and categorizing the partnership and the partner's deemed gain or loss on the sale. The categories include (1) Section 751(a) gain (loss), (2) Section 1(h)(5) collectibles gain, and (3) unrecaptured Section 1250 gain.

The instructions state, "A penalty may be imposed for failing to file each Form 8308 when due, including extensions." Additional penalties apply to failure to provide Form 8308 to the transferor and transferee.

Listen as our panel of partnership experts explains the new reporting requirements of Form 8308 for specific sales or exchanges of partnership ownership.

READ MORE

Outline

  1. Overview of Transactions that Give Rise to Form 8308 Filing Requirement
    1. Sales of Partnership Interests
    2. Disguised Sales
  2. Section 751(a)
    1. Overview
    2. Section 751 Property
    3. Traps for the Unwary
    4. Examples of Section 751(a) Computation
  3. The Role of Valuations and Section 751(a)
    1. Overview
    2. Valuation Approaches
  4. Filing requirements
    1. Form 8308 Content
    2. Filing deadlines and IRS grace periods
    3. Penalties and penalty relief for noncompliance
  5. Q&A

Benefits

The panel will review these and other critical issues:

  • Which partnerships are subject to filing New Form 8308;
  • What are Section 751(a) hot assets and how do you determine a partner’s share of Section 751(a) gain / (loss);
  • How to complete Parts I-IV of Form 8308; and
  • What are the noncompliance penalties associated with this form.

Faculty

Alfonsi, John
John T. Alfonsi, CPA
Managing Director
Cendrowski Corporate Advisors

Mr. Alfonsi has 25 years of tax consulting, business valuation, litigation support and forensic accounting experience....  |  Read More

Desalvo, Phillip
Phillip W. Desalvo
Principal
KPMG

Mr. Desalvo is a Principal in KPMG’s National M&A Tax practice and is based in the firm’s Chicago...  |  Read More

Nathan Massey
Nathan Massey
Senior Manager
KPMG US

Mr. Massey is a Senior Manager, Mergers and Acquisitions at KPMG US.

 |  Read More
Attend on April 30

Early Discount (through 04/04/25)

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend April 30?

Early Discount (through 04/04/25)

CPE credit is not available on downloads.

CPE On-Demand

See NASBA details.