Tax practitioners are responsible for presenting partner capital accounts on the tax basis. But what does this mean and how does it differ from prior year rules regarding partner capital accounts? This webinar covers exactly that — how the rules regarding the presentation of partner capital accounts differ from preceding years. This course explains these complex new rules in practical and understandable terms.
This course features a live instructor and has been specifically designed for the NJCPA.
DESIGNED FOR
Any tax practitioner who will be preparing partnership income tax returns
BENEFITS
- Understand how a partner determines and reports his or her tax basis capital account
HIGHLIGHTS
- How a partner’s outside basis and capital account differ
- Reconciling Schedule M-2 Form 1065 with Partnership K-1 Schedule L
- IRS requirement to report partner tax basis on the transactional approach
- Implications if a capital account is negative
- Deficit restoration accounts and qualified income offsets
- Modified outside basis method and modified previously taxed capital method
- Determining a partner’s beginning capital account
- Beginning capital account for partnerships and partners consistently reporting on the tax basis
COURSE LEVEL
Basic
PREREQUISITES
Basic understanding of tax rules relating to partnerships and partners
ADVANCE PREPARATION
None
ADDITIONAL NOTES