Description

Part of the technical competence of most experienced accounting and finance professionals is the ability to advise owners of S corporations and partnerships or multiple-member LLCs treated as partnerships regarding the tax rules that apply when these entities liquidate. Entity liquidations do not occur every day; but they do occur, and often at very critical times in the business life of the entity and its owners. All accounting and finance professionals should be able to advise their clients about the tax issues associated with client businesses that go out of existence and liquidate. This program explains the tax consequences associated with liquidating S corporations, partnerships, and multiple-member limited liability companies treated as partnerships.

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

Target Audience

Any accounting or finance professional who wishes to understand the rules regarding S corporation and partnership liquidations

Course Objectives

Determine the gain or loss to the entity and to the owners when it makes a liquidating distribution

Determine the basis of property distributed in a liquidating distribution to an owner of the entity

Know what to do in terms of IRS reporting when an entity liquidates

Subjects

Tax rules governing liquidation of a partnership or S corporation

Tax treatment of the shareholder/partner/member receiving a liquidating distribution in an S corporation liquidation/partnership liquidation

Tax impact on the pass-through entity when the entity is liquidated

Receipt of corporate liabilities in an S corporation distribution

Proportionate, liquidating partnership distributions to partners, and gains and losses to a partner on a liquidating partnership distribution

Tax issues associated with a partnership distribution of noncash properties in a liquidation

Compliance requirements on the occasion of a liquidation of a corporation or a partnership

Prerequisites

Basic understanding of the tax rules impacting individuals and pass-through entities