Description
Understand complex partnership tax issues and avoid potential traps caused by various transactions.Partnership tax compliance is one of the most complex sections of the Internal Revenue Code. While the passthrough nature of partnerships makes them a very desirable choice of entity for many businesses, the complexity of the Internal Revenue Code in this area presents a challenge for tax accountants. This topic will provide an overview of the necessary compliance for partnership entities. It will focus on current changes for things like tax basis capital account reporting and will provide examples that you can use in your own practice. The information will also provide an overview of complex partnership tax issues so that practitioners are more aware of the potential traps caused by various transactions.
Date: 2021-03-18 Start Time: End Time:
Learning Objectives
Brief Overview of Partnership Taxation
• Aggregate vs. Entity Issues; Check-the-Box Rules
• Pass-through of Tax Items
• Contribution to and Distribution From Partnership
Capital Account vs. Basis
• Importance of Partnership Capital Accounts (Tax and 704(b))
• Inside vs. Outside Basis
• Capital Account Example
Partnership Compliance Issues
• Separately Stated and Non-Separately Stated Items
• Reporting Depreciation and Gain on Disposal
• Book to Tax Adjustments
Impact of Partnership Liabilities
• Determining the Nature of Partnership Liabilities
• Allocation of Liabilities to Partners
• Impact on Outside Basis
Overview of Section 704(c)
• When Should I Be Concerned?
• Impact on Asset Disposition
• Special Allocations Required and Available Methods
CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Brian T. Lovett, CPA, CGMA, J.D.-WithumSmith+Brown, PC
