A foundational understanding of partnership taxation is essential to a tax preparer'scareer. Given that most U.S. businesses are formed as pass-through entities,practitioners likely encounter partnership tax matters that require attention. Thiscourse provides participants who are new to the subject or have worked in this areabut need a quick review with a firm grasp of the fundamental concepts needed to builda strong foundation of knowledge and freshen up analytical skills. Participants canalso leverage the tone of the course materials to explain complex issues to their clientswith accuracy and confidence.
Learning Objectives
dentify the effects of investor contributions and distributions on their basis in apartnership or LLC interest. Identify the tax basis of assets transferred to a partnership or limited liabilitycompany (LLC) at formation. Recognize the tax consequences of a transfer of liabilities to a partnership or LLC inconnection with property transfers at formation. Indicate the correct treatment of partnership income by a partner for self-employment tax purposes. Distinguish between current and liquidating distributions. Recall whether special allocations called for in a partnership agreement will beallowable under the Section 704(b) regulations and when they will not berecognized by the IRS.
Major Topics
Basic tax structure of partnerships and LLCs Check-the-box elections to be taxed as a partnership Partnership distributions Compensatory payments to partners At-risk and passive activity limits Profit and loss allocations: general rules and restrictions
