Description

This comprehensive training is designed to get the accountant up-to-speed quickly with partnership and limited liability company (LLC) formation and preparation issues as well as a complete understanding of calculating a partner and LLC member’s basis. The cornerstone of this course is the in-depth, line-by-line analysis of the Form 1065 Schedule K and K-1 and how these items affect the partner/member’s individual income tax return.

Objective

Once participants have completed this session, they should be able to * Identify what activities are subject to the PAL rules and the exceptions to them including those for certain real estate professionals * Define a passive activity, rental, and trade or business under IRC §469 * List the seven ways to materially participate in an activity and the six exceptions to the definition of a rental activity * Calculate the passive activity income and losses allowed and the tax ramifications of passive activity dispositions * Recognize what passive activity investments are potentially subject to the 3.8% net investment income tax under IRC §1411

Highlights

* This class will review partnership tax law by looking at case studies addressing issues and problems at both the partnership and partner level * Each attendee will receive the most comprehensive reference manual with numerous practice aids and real-world examples and case studies * Topics include but are not limited to * Extensive review of the partnership tax laws with an emphasis on any new legislative changes including the Tax Cuts & Jobs Act (TCJA) 20 percent qualified business income (QBI) deduction and changes to the interest deduction, fringe benefits, and entertainment expenses * Overview of different forms of business entities including the check-the-box regulations * Formation issues including the mandatory allocation of the §704(c) pre-contribution gain or losses back to the contributing partner/member * Schedule K and K-1—separately and nonseparately stated income and expense items * Substantial economic effect requirement to have special allocations to the partners/members * Allocation of recourse and nonrecourse debt on K-1s * Guaranteed payment issues and tax treatment of fringe benefits * Self-employment tax issues and pitfalls * §754 optional basis adjustments and mandatory adjustments * Tax treatment of distributions—cash versus noncash and liquidating versus nonliquidating * Overview of a partner/member’s outside basis and deductibility of losses

Who Should Attend

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

Required Knowledge

None

Advanced Prep

Background in partnership and individual income tax law