This program provides a detailed analysis of the calculations related to determining a partner's tax basis for a partnerships interest using the Form 1065, Schedule K-1 information. An illustrated example with filled in forms will demonstrate how the process works and discuss its many potential pitfalls.
CPAs working in public accounting firms and/or working for a partnership
After attending this presentation you will be able to...
- Provide a thorough review and update of the latest tax issues related to LLC members and partners basis from formation through operations and concluding with sale and/or liquidation.
The major topics that will be covered in this class include:
- How to calculate tax basis capital accounts
- 2020 new reporting rules on Form 1065, Schedule K-1
- Calculation of basis when the entity is formed, including the impact of contributed property
- Explanation of the use of both "inside" and "outside" basis determination
- Clarifies the importance of partnership capital accounts and partnerships debt on partner's tax basis
- Comprehensive example illustrating the mechanics of the basis determination process
- Discussion on how basis is impacted by distributions of partnership property
- Explanation of how basis is impacted by sale and/or liquidation of the partnership interest
Basic working knowledge of partnership taxation