This mini-course is an essential guide for professionals seeking to deepen their understanding of partnership taxation. It covers a range of critical topics, from the basic tax treatment of partnerships to the intricate details of their operation. The course offers the benefit of enabling participants to recognize the advantages and disadvantages of partnership taxation, including how it affects income attribution. Furthermore, it provides clarity on partnership income reporting requirements, loss deduction limitations, and the tax treatment of guaranteed payments and other fees. Participants will also gain insights into the tax implications of contributions to a partnership under Section 721 and learn to differentiate between liquidating and non-liquidating distributions. This course is invaluable for those looking to enhance their proficiency in partnership taxation, ensuring well-informed tax planning and compliance.
Learning Objectives
After completing this chapter, participants will be able to:
Recognize the tax treatment of partnerships noting advantages and disadvantages and their effect on income attribution.
Determine partnership income and reporting requirements by:
Identifying filing requirements and the impact partnership K-1s on individual or partner taxation; and
Specifying loss deduction limitations and stating the tax treatment of guaranteed payments, organizational expenses, and other fees.
Identify the tax treatment of contributions of property to a partnership under Section 721 and the impact on tax basis.
Recognize the tax treatment of partnership distributions and sale of partnership interests by:
Identifying the tax treatment of partner liabilities and of sales and exchanges of partnership interests and property; and
Determining the differences between liquidating and non-liquidating payments including the definition of a partner's basis on such an event.
Major Topics
Partnership Taxation
Contributions to Partnerships
Sales & Exchanges of Partnership Interests
Partnership Distributions and Liquidations
