Form 1065 and Schedule K-1 - IRS Throws Rocks at a Hornets' Nest (Completed)

On all-new Forms 1065, Schedules K-1 and in related instructions, IRS is launching massive new reporting requirements re: allocation of liabilities among partners, §754 elections, negative tax basis capital accounts, at-risk activities, passive activities, partner level built-in gains and many more. In this course, we’ll tackle these new disclosures and what’s behind them.

Who Should Attend
Return preparers, tax planners and taxpayers desiring to keep up with IRS’s Form 1065 Schedule K-1 reporting requirements.

Topics Covered

• Form 1065 and K-1 — New reporting requirements in depth
• Disregarded entity partners — Disclosures, depth of implications
• 3 year average annual gross receipts test — 4 places it matters
• Negative capital accounts — Switch to tax basis reporting
• Basis in partner's partnership interest — New inquiries, new treacheries
• Disguised sales — New question as to partner disclosure
• §704(c) Built-in gains and loss — Much new "as-you-go" info required
• Aggregation of at-risk activities — Disclosures with sticky implications
• Grouping of passive activities — Disclosure and detail required
• Miscellaneous — Moving target reporting for §199A, capital accounts, §754 elections with §743(b) adjustments, sales of partnership interests, partnerships with foreign partners, tiered partnership debt disclosure issues, and so on
• Grouping of passive activities — New disclosure and detail required

Learning Objectives

• Discuss Negative tax basis capital account reporting — What must be computed and disclosed (and by when)
• Discuss Plethora of other new info required (built-in gains lying in wait, disregarded entity partners, new tiered partnership reporting and more)

Level
Overview

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of tax preparation.

Advance Preparation
None