This program addresses the most recent developments impacting partnerships operating as LLCs, with a focus on legislative, administrative, and tax form changes. Emphasis will be placed on partners "tax basis" capital accounts, now required for 2020 tax form reporting.
CPAs in public practice and industry seeking an update on the latest tax developments affecting partnerships.
After attending this presentation you will be able to...
- Provide an update of the recent changes affecting the partnership entity and its partners
- Differentiate between financial accounting and tax capital accounts
- Identify rules that impact Schedule K-1 reporting
The major topics that will be covered in this class include:
- Discussion of the impact of the Section 199A flow-through entities deduction on partnerships and their partners
- The meaning of a "tax basis capital account" - how do the financial accounting and tax capital accounts differ from one another
- How to determine a partner's share of the partnerships liabilities
- Distinguishing "recourse" loans from "nonrecourse" loans
- What are the "qualified nonrecourse financing" loans and how they affect partners
- Review of the Sec. 704 "built-in gain or loss" rules and how they impact Schedule K-1 reporting
- Review of the Sec. 464 "at risk" rules and how they impact Schedule K-1 reporting
Basic working knowledge of partnership taxation