Description

Objective

Once participants have completed this session, they should be able to: Form a partnership and calculate the partnership’s initial inside basis in the assets and partner’s outside basis in the entity Understand how the schedule K items get allocated to the partners/members on their individual Schedule K-1 Prepare a partnership’s initial tax and §704(b) book capital accounts and understand their purpose

Highlights

Topics include but are not limited to: Extensive review of the partnership tax laws with an emphasis on any new legislative changes (e.g., SECURE Act, CARES Act and COVID-related Tax Relief Act of 2020 and Taxpayer Certainty & Disaster Relief Act of 2020) including the 20% qualified business income (QBI) deduction, 3.8% net investment income tax and changes to the interest deduction, fringe benefits and entertainment expenses 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 & non-separately stated income and expense items 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 754 optional basis adjustments and mandatory adjustments Tax treatment of distributions – cash versus non-cash & liquidating versus non-liquidating Overview of a partner/member’s outside basis and deductibility of losses

Who Should Attend

Tax professionals (in public or private industry) seeking a case driven income tax return course addressing the most common, yet complex Federal partnership and LLC issues and problems.

Required Knowledge

Background in partnership and individual income tax law

Advanced Prep

None