Partnership & LLC Tax Workshop (Advanced)

Description

This one-day course exposes the participant to more difficult tax partnership issues that are not routinely encountered in preparing an easier Form 1065.

Objectives

• Describe the tax effect of the Tax Cuts and Jobs Act on the partnership rules
• Describe the tax effects of a termination and transactions between a partner and a tax partnership
• Explain the rules that apply to sale of an interest in a partnership, including unrealized receivables, inventory, and the §754 election, and differentiate between inside and outside basis
• Describe the tax effects of current distributions, including reporting problems on Schedule K and Schedule K-1, and the §754 election, and distributions of marketable securities
• Describe the tax effects of a liquidating distribution, including reporting problems on Schedule K and Schedule K-1, and the §754 election
• Apply the 3.8% Medicare tax to gains and losses from a sale or exchange of an interest in a partnership, as well as to current and liquidating distributions
• Identify disproportionate distributions under §751(b)
• Describe the tax effects of withdrawing from the partnership, including cross-purchase agreements and payments for a retiring partner’s interest in stated and unstated partnership goodwill
• Identify the tax problems associated with death of a partner, including income in respect of a decedent and self-employment tax, as well as the different tax effects of a cross-purchase agreement, having the estate succeed to the deceased partner’s interest, or requiring the partnership to redeem the deceased partner’s interest
• Summarize the different types of special allocations under §704(b)(2), reverse §704(c) allocations, and the allocation of recourse and nonrecourse debt of a partnership and LLC, and differentiate between a waterfall provision and a targeted allocation