Partnerships: How to Calculate and Report Partner's Basis

Description

This program provides a detailed analysis of the calculations related to determining a partner's tax basis for a partnerships interest using the Form 1065, Schedule K-1 information. An illustrated example with filled in forms will demonstrate how the process works and discuss its many potential pitfalls. Also, "tax basis" capital accounts must be reported in 2020 Form 1065 K-1s. This course explores what that means and how to calculate tax basis capital accounts.

This course qualifies for PTIN credit.

This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics that will be covered in this class include:

• How to calculate tax basis capital accounts
• 2020 new reporting rules on Form 1065, Schedule K-1
• Calculation of basis when the entity is formed, including the impact of contributed property
• Explanation of the use of both "inside" and "outside" basis determination
• Clarifies the importance of partnership capital accounts and partnerships debt on partner's tax basis
• Comprehensive example illustrating the mechanics of the basis determination process
• Discussion on how basis is impacted by distributions of partnership property
• Explanation of how basis is impacted by sale and/or liquidation of the partnership interest

Objectives

After attending this presentation you will be able to...

• Provide a thorough review and update of the latest tax issues related to LLC members and partners basis from formation through operations and concluding with sale and/or liquidation.

Designed For

CPAs working in public accounting firms and/or working for a partnership