With the increasing complexity and ever-changing nature of tax laws and issues, today?s accountant needs a partnership/LLC course focusing on the birth, growth, maturity, and death of a closely held partnership/LLC. This case driven course will deal with partnership/LLC income tax laws from formation to liquidation. This class will review the partnership tax law by looking at case studies addressing issues and problems at both the partnership and partner level. Each attendee will receive the most comprehensive reference manual with numerous practice aids and real-world examples and case studies.
Target Audience
Tax professionals (in public or private industry) seeking a case driven income tax return course addressing many common, yet complex Federal partnership and LLC issues and problems.
Course Objectives
Form a partnership/LLC and calculate the entity• s initial inside basis in the assets and partner/member• s outside basis in the entity • Understand the operational issues during the growth and maturity of a partnership/LLC and how the schedule K items get allocated to the partners/members on their individual Schedule K-1 effecting outside basis • Comprehend the tax ramifications
Subjects
Extensive review of the partnership tax laws with an emphasis on any new legislative changes including any TCJA provisions expiring after 2025 • Overview of different forms of business entities including the check-the-box regulations • Formation issues including the mandatory allocation of the §704(c) pre-contribution gain or losses back to the contributing partner/member • Schedule K and K-1 • separately stated versus non-separately stated income and expense items • Detailed Schedule K-1 reporting including the 20% qualified business income (QBI) deduction and 3.8% net investment income tax • Calculating the tax and §704(b) book capital accounts • Substantial economic effect requirement to have special allocations to the partners/members • Allocation of recourse & non-recourse debt on K-1s • Guaranteed payment issues and tax treatment of fringe benefits • Self-employment tax issues and pitfalls • Tax treatment of distributions - cash versus non-cash & liquidating versus non-liquidating • Sales and liquidations (redemptions) of partnership interests • §754 optional basis adjustments and mandatory adjustments
Advanced Preparation
Background in partnership and individual income tax law.
