Description

This case-driven training is designed to get the inexperienced accountant up-to-speed quickly in the most common areas of partnership, limited liability company (LLC), and limited liability partnership (LLP) taxation. A cornerstone of this course is the preparation of the Form 1065 using a fairly complex trial balance common to most partnership, LLP, and LLC income tax returns.

Objective

Once participants have completed this session, they should be able to * Prepare a complete Form 1065 income tax return and related schedules with minimal review points * Understand the partnership income tax law from a tax-form perspective and become more knowledgeable with the information gathering process (i.e. asking the right questions)

Highlights

* This session is taught using a Hands-On methodology * Using a comprehensive trial balance, the participant will walk through the steps to prepare a complete and accurate Form 1065 (and related schedules) * Each participant will receive a comprehensive partnership income tax reference manual that includes numerous practice aids, real-world examples, new federal income tax forms and schedules, and the Phoenix Beach Quick Reference Chart * Topics include * Extensive review of the partnership tax laws with an emphasis on any new legislative changes including the Tax Cuts & Jobs Act (TCJA) new 20% qualified business income (QBI) deduction and changes to the interest deduction, fringe benefits, and entertainment expenses * Comparison of partnerships, LLCs, and LLPs * Overview the formation of a partnership/LLC and the §704(c) precontribution gain or loss rules * Schedule K analysis—determine if income statement items are separately (i.e. Schedule K) or nonseparately stated income and expense items * How Schedule K items get allocated to partners on Schedule K-1s * Look at what relevant information related to the 3.8% net investment income tax needs to be reported to the partners * Learn the special tax treatment of fringe benefits paid on behalf of the partners and LLC members * Discuss partner guaranteed payments and self-employment tax issues * Schedule M-1—reconciliation of income or loss per books with income or loss per income tax return * Schedule M-2—analysis of partners’ capital accounts * Review the importance and basics of calculating a partner/member’s outside tax basis * Overview of the tax treatment of distributions, recourse, and nonrecourse debt allocations, §754 election for optional basis adjustments, and §743/§734 mandatory basis adjustments

Who Should Attend

Tax return preparers, staff accountants, and paraprofessionals with little or no experience and out-of-practice public accountants seeking a basic partnership tax return preparation course

Required Knowledge

None

Advanced Prep

None