Operational Issues, Form 1065, and Schedule K-1

Description

The participant will learn the various rules that a return preparer must consider in preparing For 1065, U.S. Return of Partnership Income.

Highlights

LINK AND INSTRUCTIONS TO COME FROM AES TAX ONE DAY PRIOR TO SESSION

Objectives

After completing this course the participant will be able to:

• Describe the partnership audit provisions and penalty for late filing a Form 1065.
• Determine the required taxable year end for an LLC/partnership.
• Determine the method of accounting for an LLC/partnership and whether an LC is a tax shelter and discuss Reg. §1.471-1(b)(6)(iii)(F), Ex. 6.
• Discuss the application of the business interest expense limits of §163(j), Line 13(k) of the Schedule K-1, Form 8990, and using Rev. Proc. 2026-17 to withdraw a §163(j)(7) election.
• Discuss the PTE election, including calculating PTE taxable income, determining how much of the state tax paid is deductible as a business expense, and the effect of the PTE tax on the individual partner.
• File Form 1065 and consider reporting requirements for tax basis capital account.
• Apply the passive loss rules and self-charged interest rules to a partnership.
• Determine whether the income from a partnership/LLC is subject to self-employment tax.
• Apply the varying interest rules under §706(d).
• Explain the fringe benefits which are available to a partnership and the treatment of health insurance premiums under ACA.
• Reconstruct a partner's basis.
• Determine the maximum amount of loss that is deductible by a partner and the character of the loss.
• Apply the at-risk rules and passive loss rules to an LLC.
• Determine how much of the self-charged interest is subject to the 3.8% tax on net investment income.