Description

Accounting and finance professionals are responsible for presenting partner capital accounts on the tax basis. But what does this mean and how have rules changed in recent years regarding partner capital accounts? This webinar covers exactly that. For accounting and finance professionals preparing partnership 1065 forms, this course explains these complex rules in practical and understandable terms.

Instructor: Mike Tucker, Ph.D., LL.M., J.D., CPA

Target Audience

Accounting and finance professionals who will be preparing partnership income tax returns

Course Objectives

Understand how a partner determines and reports his or her tax basis capital account 

Subjects

How a partner’s outside basis and capital account differ

Reconciling Schedule M-2 Form 1065 with Partnership K-1 Schedule L

IRS requirement to report partner tax basis on the transactional approach

Implications if a capital account is negative

Deficit restoration accounts and qualified income offsets

Modified outside basis method and modified previously taxed capital method

Determining a partner’s beginning capital account 

Beginning capital account for partnerships and partners consistently reporting on the tax basis

The two types of adjustments under 754 and how 743 and 734 require different capital account presentations

Prerequisites

Basic understanding of tax rules relating to partnerships and partners