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 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

Course Highlights

This class will review partnership tax law by looking at case studies addressing issues and problems at both the partnership and partner level.  Each attendee will receive the most comprehensive reference manual with numerous practice aids and real-world examples and case studies. 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