Receive a comprehensive understanding of key Federal income tax issues in partnership taxation. Examine the different types of entities that are taxed as partnerships and identify the significant differences among them.
Understand the consequences of contributions to and distributions from partnerships which includes partnership operations, allocations of income and loss, sale and exchange of partnership interests and partnership debt. Emphasis is placed on identifying tax planning opportunities and avoiding traps for the unwary.
Note: This is a survey course. Although class discussion reviews several features of Form 1065 and Schedule K-1, form preparation is not covered.
Identify which entities will be taxed as partnerships.
Determine the tax consequences of partnership contributions and distributions.
Choose among the available taxable years and methods of accounting to determine the consequences of partnership operations.
Select the proper method for allocating items of partnership income, gain, loss, deduction and credit.
Identify the consequences of partnership recourse and nonrecourse debt.
Determine how key tax items are reported on Form 1065 and Schedule K-1.
Classification of entities as partnerships
Key differences between general partnerships, LPs, LLPs and LLCs
Inside and outside basis, and capital accounts
Partnerships: Formation, operations, liabilities and allocation of income and loss
Sale or exchange of partnership interests
Elective and Mandatory Inside Basis Adjustments
CPAs, attorneys, tax return preparers and financial professionals.