[WEB] Selected Partnership & LLC Tax Problems

Description

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

The program will highlight some of the common partnership problems encountered by LLCs and LLPs, including the PTE election. 

Objectives

After completing this course the participant will be able to:

• Discuss the specific tax problems related to LLCs and LLPs, including: classification problems and check-the-box regulations; taxable year-ends; self-employment tax; method of accounting; discharge of indebtedness income; retirement; special allocations.
• Identify key terms that are found in an operating agreement.
• Discuss the tax problems associated with contribution of property to a partnership, the application of §704(c) to the contributed property, and reverse §794(c) allocations.
• Discuss operational issues, including: late filing penalty, taxable year end, accounting methods, maximum loss that is deductible, fringe benefits, unreimbursed out-of-pocket expenses, electing out of the audit provisions, and filing Schedule K-2 and Schedule K-3.
• Describe the term "debt" and differentiate recourse and nonrecourse debt.
• Discuss the tax effect  of receiving a capital and/or profits interest for services.
• Determine whether the income generated by an LLC or LLP is subject to self-employment tax.
• Calculate the deduction for qualified business income under §199A.
• Differentiate the tax effects if a member sells its interest to a third party or the LLC redeems a member's interest in the LLC.
• Distinguish a current distribution from a liquidating distribution.
• Discuss the pros and cons of advising an LLC to make a §754 election.
• Describe the basic tax effects if a member retires or dies.