About this episode

This episode covers the calculation of Section 704(c) built-in gain and various allocation methods in partnership taxation.

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How to calculate Section 704(c) built-in gain when a partner contributes appreciated property. - The mandatory allocation of pre-contribution gain back to the contributing partner when the partnership sells the asset. - The definition and impact of the "ceiling rule" limitation under the traditional allocation method. - The purpose of the traditional method with curative allocations and the remedial method in correcting ceiling rule distortions. - How to properly allocate post-contribution appreciation based on the partnership agreement. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

More episodes of Finance Exam Prep

• Enrolled Agent Exam [Part 2] 11, Schedule K-1 (Form 1065) — Partner Reporting · May 8, 2026 · 3 min
• Enrolled Agent Exam [Part 2] 10, Partnership Distributions — Cash and Property · May 7, 2026 · 4 min
• Enrolled Agent Exam [Part 2] 09, Guaranteed Payments to Partners — §707(c) · May 6, 2026 · 4 min

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