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Allocating Basis Adjustment from 754 Election on Transfer of Partnership Interest

This template can be used to determine and allocate the basis adjustments resulting from Section 754 elections for sales or exchanges occurring on or after 12/15/99.

Entering Information

All of the information needed to produce the computation is entered on the Input worksheet.  The yellow highlighted cells are calculated fields, and no data should be entered in these cells.  Any gray cells are not calculated fields, but data should not be entered in these cells.

Enter the following information:

• The amount of cash paid if the interest was purchased, plus the fair market value (FMV) of any other consideration paid for the interest and the amount of liabilities assumed
• The FMV of the interest at the date of death (or alternate valuation date, if elected) if the interest was inherited, plus the amount of liabilities assumed
• The ownership percentage transferred
• The transferee’s share of partnership liabilities
• The adjusted basis and FMV of the partnership’s assets, classified according to the following classes:

- Ordinary income property

- Capital and Section 1231 assets, other than Section 197 intangibles

- Section 197 Intangibles, other than goodwill and going concern value

- Goodwill and going concern value

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