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New Rules Regarding the Calculation and Tax Reporting of a Partner's Basis and Capital Account (Z1-CPMB-2021-01-SSWC)

100 Minutes
On demand - Video

On Demand - Video

2 CPE Credits in TX

OVERVIEW

Tax practitioners are responsible for presenting partner capital accounts on the tax basis. But what does this mean and how have rules changed in recent years regarding partner capital accounts? This course covers exactly that. For tax practitioners preparing partnership 1065 forms, this course explains these complex rules in practical and understandable terms.

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
  • The two types of adjustments under 754 and how 743 and 734 require different capital account presentations

COURSE LEVEL

Basic

PREREQUISITES

Basic understanding of tax rules relating to partnerships and partners

ADVANCE PREPARATION

None

ADDITIONAL NOTES

  • Qualifies for IRS credit

PRICING

$89.00 - Member

$109.00 - Nonmember

ADDITIONAL OPTIONS

Remind me to register

Print a registration form

COURSE DEVELOPER

Surgent

AREAS OF INTEREST

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