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Partnership Tax Strategies

Take advantage of the unique tax strategies for partnerships.

Whether your business partnership is an S-corporation, LLC, sole proprietor or a nonprofit organization, SVA’s professionals can assist you with the complexities in taxes for partnerships as well as use strategies for both state and local and businesses to impact your tax burden.

754 Election (Basis Step Up)

When a new partner joins an existing partnership, the new partner may not expect to be allocated gains or losses by the partnership after having just paid fair market for his or her share of the partnership. The new partner can have a different basis in the assets then the partnership does. To alleviate this problem, we can calculate the Sec. 754 Basis Adjustment necessary to equalize the basis of the partner and the partnership.

Partner Transactions

There are special rules in place for certain transactions involving partners in a partnership. The IRS has developed rules to discourage the structuring of certain transactions in an abusive manner. We help our clients understand the correct way to set up and report such transactions, so that they will withstand the scrutiny of the IRS.

Tax Credits

Low-Income Housing Credit

One of the strengths of our real estate business has been our active involvement in supporting low-income housing tax credit (Section 42) developments from the inception of the program. Since then, our team has assisted clients with hundreds of developments that range from new construction to the rehabilitation of older buildings. These clients include nonprofits, community agencies, and for-profit developers, some of which incorporate mortgage revenue bonds and all of which contain a wide variety of housing (i.e., specialty housing, family developments, scattered sites, and senior and assisted living).

Rehabilitation Tax Credit

The rehabilitation tax credit is earned for qualified rehabilitation expenditures on pre-1936 constructed commercial buildings (10 percent federal credit) or certified historic structures (20 percent federal credit).

More SVA Business Tax Services

Learn more about SVA’s comprehensive business tax services including: