This two-day training course provides a comprehensive understanding of the Federal income tax laws applicable to partnerships, limited liability companies (LLCs) and limited liability partnerships (LLPs) and their owners. The cornerstone of this course is the integration of the most recent tax laws and theories into real-world case scenarios that teach the preparation and review of IRS tax forms and schedules. Attendees will receive a comprehensive partnership/LLC income tax reference manual that includes practice aids, real-world examples, new Federal income tax forms and schedules, and Pat Garverick's Quick Reference Chart.
Learning Objectives
• Understand the Federal income tax laws applicable to Partnerships/LLCs and their partners from formation to liquidation (i.e. theory) and apply this from a tax-form perspective (i.e. tax preparation)
• Prepare a complete Form 1065 income tax return and related schedules with minimal review points
Major Topics
• Extensive review of the partnership tax laws with an emphasis on any new legislative changes and Form 1065 (and related schedules) preparation issues
• Overview of different forms of business entities, including the check-the-box regulations
• Formation issues, including the mandatory allocation of the §704(c) pre-contribution gain or losses back to the contributing partner/member
• Schedule K and K-1’preparation issues including separately and non-separately stated income and expense items (including the 20% qualified business income (QBI) deduction, 3.8% net investment income tax, business interest deduction limitations, fringe benefits and entertainment expenses)
• Calculating the tax and §704(b) book capital accounts
• Understand the substantial economic effect requirement to have special allocations to the partners/members
• Allocation of recourse and non-recourse debt to the schedule K-1s
• Deductibility of fringe benefits, including health insurance premiums
• Guaranteed payments & self-employment tax issues and pitfalls
• Overview of how partnership losses and deductions can be limited to calculating a partner/member’s outside basis and at-risk rules
• §754 election for optional basis adjustments triggering §743 (transfer of interests) and §734 (distributions)
• Partnership liquidation and distribution tax ramifications at both the partnership and partner level
