Most U.S. businesses are formed as a pass-through entity, which includes partnerships. If you are new to the subject, or if you have worked in this area for years but need a quick review, this course will provide a firm grasp of the fundamental concepts, help you to build a strong foundation of knowledge, and freshen up your analytical skills. Talking about tax can sometimes sound like you're speaking a foreign language in front of your clients. You can leverage the tone of the course materials to explain complex issues with accuracy and confidence.
DESIGNED FOR
public accounting staff and seniors
Tax professionals in company finance or Tax departments
BENEFITS
- Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
- Calculate the tax basis of assets transferred to a partnership or LLC at formation.
- Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation.
- Calculate the partner’s or member’s remaining basis in their interest following a distribution of cash or property from the partnership or LLC.
- 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.
- Distinguish between “book” allocations required under Section 704(b) and “tax” allocations required under Section 704(c).
- Identify the potential economic consequences of a special allocation to a partner or LLC member.
HIGHLIGHTS
Basic tax structure of partnerships and LLCs
Electing to be taxed as a partnership: “Check-the-box” rules
Partnership distributions
Compensatory payments to partners
At-risk and passive activity limits
Profit and loss allocations: general rules and restrictionsCOURSE LEVEL
Basic
PREREQUISITES
None
ADVANCE PREPARATION
None