Partnership & LLC (Form 1065) - Formation to Liquidation

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.

**Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

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

Prerequisites

Background in partnership and individual income tax law

Designed For

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

Objectives

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