Partnership Taxation: Comprehensive (Form 1065) Webcast | 4203577A

Instructors

Date :
August 3, 2020 8:30 AM - 4:00 PM
Location :
Webcast
Facility :
Webcast Rebroadcast
Level of Difficulty :
Intermediate
Member Price :
289.00
Nonmember Price :
389.00
CPE Credits :
CPE 8.00, MCLE 6.50, IRS-TX 8.00, MCLE LS-TX 6.50, CTEC-TX 8.00
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The taxation of partnerships has become more complex in the past several years.

This course highlights the major areas of concern for tax advisors and their clients in compliance and planning for partnership operations, distributions and transactions.

Course topics include, special allocations, targeted allocations, proper calculation of outside and inside tax basis, tax consequences of distributions, impact of “hot assets” on distributions and transfer of partnership interests, issuance of partnership interests to service partners and a comprehensive overview of the Form 1065 with accompanying schedules. Learn how to properly report and calculate critical partnership tax items that generate most IRS audit adjustments.

Objectives:

  • Identify how to form a partnership qualified entity and calculate its initial inside basis in the assets and each partner’s outside basis in the entity.
  • Prepare a basic partnership (Form 1065), Schedule K1s and Schedule M-3.
  • Calculate the tax impact of both operating and liquidating cash and non-cash distributions under five different scenarios.
  • Determine how Schedule K items get allocated to partners/members on their individual Schedule K-1 including special allocations and targeted allocations.
  • Understand the tax impact and differences of the issuance of both capital and profits interests (carried interest) in exchange for services.
  • Determine the proper accounting period for a partnership.
  • Calculate and know how to properly report guaranteed payments, ordinary income and separately stated items.
  • Understand how to determine and calculate self-employment income for a partner in a partnership.
  • Determine how to allocate debt among partners including the impact on outside basis and At-risk basis.
  • Understand the new IRS capital account disclosure requirement on the Schedule K-1.
  • Identify the three main reasons for calculating a partner's or member’s basis in a partnership/LLC.
  • Calculate a partner's or member’s outside basis and determine if losses and deductions are limited on their individual income
    tax return.

Major Subjects:

  • Emphasize any new legislative, administrative and judicial changes affecting partnerships and partners
  • Review the Form 1065 to learn how income statement items get reported on the partnership/LLC tax return (i.e., page 1 versus Schedule K) and flow-thru to the partner/members on Schedule K-1 along with the Schedule M-3.
  • Analyze the Schedule K-1 line-by-line and discuss where the items get reported on the individual’s Federal income tax return and how the items affect the partner/member’s outside basis
  • Formation issues including the mandatory allocation of the §704(c) pre-contribution gain or losses back to the contributing partner/member
  • Understand how to allocate income and loss under various methods including targeted allocations.
  • The purpose of tax and §704(b) book capital account
  • Reporting recourse and non-recourse debt on the Schedule K-1
  • Tax ramifications and reporting of cash and non-cash distributions including disproportionate distributions of “hot assets”
  • Overview of the §754 election for optional basis adjustments triggering §743 (transfer of interests) and §734 (distributions)

Advanced Prep:

 

 None

 

Misc. Information:

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Level of Difficulty:
Intermediate
Field of Interest:
Taxes
Prerequisites:
 

 None

 
Designed For:
 

Tax professionals who need an in-depth training course on tax preparation issues, basis calculations, reporting of tax basis capital accounts and distributions rules for partnerships, LLCs and their owners.

 

Instructors

Troy Lewis, CPA
Troy Lewis is the Past Chair of the Tax Executive Committee of the American Institute of CPAs (AICPA) in Washington, DC. In this role, he has testified six times before the United States Senate Finance Committee and the House Committee on Small Business. Lewis has been active with the AICPA and the Utah Association of CPAs, for over two decades serving in key leadership positions including the President of the UACPA. Lewis currently teaches accounting and tax at Brigham Young University in Provo, Utah. He is in practice as a Manager/Member at Lewis & Associates, CPAs, LLC in Draper, Utah. He also worked in public accounting at Arthur Andersen and for a community bank in St. George, Utah. He obtained his Masters of Accountancy and Bachelors of Science in Accountancy from Brigham Young University. He is also a Certified Public Accountant (CPA) and a Chartered Global Management Accountant (CGMA).

Materials:

  • Materials - ebook