The partnership section of the IRC is arguably one of the most complicated. That complexity, and the reliability of tax software to properly handle it, can create many issues for practitioners when processing their client's LLC and partnership tax returns. This case-study-based course covers the common errors practitioners make on partnership tax returns that review staff often miss. The intent is to sharpen the skills of reviewers by examining four case studies and discussing issues in which additional information from the client may be warranted and areas of tax law where proper treatment requires further analysis and information. Participants are challenged to consider the effects of recent tax legislation, including H.R. 1, commonly referred to as OBBBA, when evaluating the case studies. Matters discussed include income, deductions, and K-1 reporting.
DESIGNED FOR
Partners and managers in CPA firms
; experienced CPA staff
BENEFITS
- Identify the mechanics of a partnership’s tax return, including partner capital
account calculations and permissible tax years.
- Determine the proper allocation of recourse liabilities among partners.
- Analyze the consequences of a new partner joining a partnership.
- Determine depreciation expense among the contributing and noncontributing partners under Section 704(c).
- Determine the value of assets with nonrecourse liabilities.
HIGHLIGHTS
- Form 1065
- Schedules K and K-1
- Schedules M-1 and M-2
- Calculating recourse and nonrecourse liabilities
- Partner inside and outside basis
- Partner’s capital account analysis
- Sections 704(b), 704(c), 721, 722, 732(b), 734(b), 737, 743(b)
PREREQUISITES
Basic knowledge of partnership taxation
ADVANCE PREPARATION
None