Overview

With the increasing complexity and ever-changing nature of tax laws and issues, today’s accountant needs a partnership/LLC course focusing on the hottest tax topics and most frequently encountered issues. This case driven course will deal with both partnership/LLC and partner/member developments addressing the most common, yet complex Federal partnership/LLC issues and problems.

Learning Objectives

Once participants have completed this session, they should be able to:

• Form a partnership/LLC and calculate the entity’s initial inside basis in the assets and partner/member’s outside basis in the entity
• Understand the operational issues during the growth and maturity of a partnership/LLC and how the schedule K items get allocated to the partners/members on their individual Schedule K-1 effecting outside basis

• Comprehend the tax ramifications of the sale versus redemption of a partnership/member interest

Course Highlights

• Extensive review of the partnership tax laws with an emphasis on any new legislative changes 

• 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 stated versus non-separately stated income and expense items

• Detailed Schedule K-1 reporting including the 20% qualified business income (QBI) deduction and 3.8% net investment income tax

• Calculating the tax and §704(b) book capital accounts

• 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

• Tax treatment of distributions – cash versus non-cash & liquidating versus non-liquidating

• Sales and liquidations (redemptions) of partnership interests

• §754 optional basis adjustments and mandatory adjustments