Overview

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.

Learning Objectives

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)

Course 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 Pat Garverick’s Quick Reference Chart.  Topics include: 

• Extensive review of the partnership income tax laws with an emphasis on any new legislative changes
• Comparison of partnerships, LLCs and LLPs
• Overview the formation of a partnership/LLC and the §704(c) pre-contribution gain or loss rules
• Schedule K analysis– determine if income statement items are separately (i.e. schedule K) or non-separately stated income and expense items
• How schedule K items get allocated to partners on schedule K-1s
• Look at detailed Schedule K-1 information reporting to partners needed for the qualified business income (QBI) deduction, 3.8% net investment income tax and business interest expense limitations
• Learn the special tax treatment of fringe benefits paid on behalf of the partners and LLC members
• Comparing the tax and §704(b) book capital account computations
• 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