Is LLC and partnership taxation something new to you? Perhaps you have worked in this area for years but need a quick review of the fundamental concepts? Use this CPE course to build a foundation of knowledge or freshen up your skills.
The course addresses the tax consequences of the most common transactions engaged in by LLCs and partnerships. Develop a level of comfort with the basic conceptual framework underlying partnership and LLC taxation, with an emphasis on explaining the tax consequences associated with issues that are most frequently confronted by tax practitioners.
Basic Tax Structure of Partnerships and LLCs
Electing to be Taxed as a Partnership: The “Check-the-Box” Rules
Tax Consequences of Partnership or LLC Formation
Compensatory Payments to Partners
At-Risk and Passive Activity Limits
Profit and Loss Allocations: General Rules and Restrictions
Reporting Taxable Income for Partnerships and LLCs
This course will prepare you to:
Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest
Determine how partnerships and LLCs opting to be treated as partnerships report their federal taxable income to the IRS and to investors
Indicate how investors in partnerships and LLCs report their shares of entity income and loss for tax purposes, and how those shares affect the basis of their investments in the entity
Calculate the tax basis of assets transferred to a partnership or limited liability company (LLC) at formation
Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation
Determine the tax consequences associated with the exchange of an interest in a partnership or LLC for services
Distinguish between current and liquidating distributions
Determine the basis in the investor’s hands of property received as a distribution from a partnership or limited liability company (LLC)
Calculate the partner’s or member’s remaining basis in his or her interest following a distribution of cash or property from the partnership or LLC
Determine the proper tax treatment of retirement payments to a partner
Determine whether payments to a partner will be treated as guaranteed payments, distributive shares, or payments to a third party
Calculate the amount of the guaranteed payment when the partner is to receive the lesser of a fixed dollar amount or a fixed percentage of partnership income
Indicate the correct treatment of partnership income by a partner for self-employment tax purposes
Differentiate the limitations that apply to partners’ or limited liability company (LLC) members’ distributive share of losses from those of a partnership or LLC
Calculate the basis and amount at risk in a partnership or LLC interest for purposes of those loss limitation rules
Distinguish between a passive activity that would be subject to the passive loss rules, and an active activity that would not be subject to passive activity rules
Determine whether special allocations called for in a partnership agreement will be allowable under the Section 704(b) regulations, and when they will not be recognized by the IRS
Recognize whether special allocations required under Section 704(c) have been made on a partnership or limited liability company (LLC) tax return
Distinguish the difference between “book” allocations required under Section 704(b) and “tax” allocations required under Section 704(c)
Identify the potential economic consequences to a partner or LLC member of a special allocation
Identify the federal income tax forms that must be filed with the IRS by an average partnership or limited liability company (LLC), and what forms must be sent to the investors
Determine where each partnership item of income or deduction should be reported on the partnership income tax return
Who Will Benefit?
Public accounting staff, seniors, supervisors, and tax professionals in company finance or tax departments
Advance Preparation: None.
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