Tax Fundamentals of LLCs and Partnerships - Tax Staff Essentials

Overview

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LLC and partnership taxation

Hone your skills

Gain - or refresh - your knowledge about the complex areas of LLC taxation and partnership taxation. Understand the fundamental concepts to build a strong foundation of knowledge, and freshen up your skills.

Most common transactions

Learn about the tax consequences of the most common transactions engaged in by LLCs and partnerships. Understand how to explain to clients the tax consequences associated with issues that are most frequently confronted by tax practitioners.

Highlights

Key Topics

• Basic tax structure of partnerships and LLCs
• Electing to be taxed as a partnership: "Check-the-box" rules
• Tax consequences of a partnership or LLC formation
• Partnership distributions
• Compensatory payments to partners
• At-risk and passive activity limits
• Profit and loss allocations: General rules and restrictions
• Reporting taxable income for partnerships and LLCs

Prerequisites

None

Designed For

Who Will Benefit

• Public accounting staff and seniors
• Tax professionals in company finance or tax departments

Objectives

Learning Outcomes

• Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
• Recognize the tax basis of assets transferred to a partnership or LLC at formation.
• Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation.
• Estimate the partner's or member's remaining basis in interest following a distribution of cash or property from the partnership or LLC.
• Distinguish the amount of the guaranteed payment when the partner is to receive the lesser of a fixed dollar amount or a fixed percentage of partnership income.
• Distinguish between "book" allocations required under Section 704(b) and "tax" allocations required under Section 704(c).
• Identify the potential economic consequences of a special allocation to a partner or LLC member.
• Recognize whether special allocations required under Section 704(c) have been made on a partnership or LLC tax return.