Basic Partnership Taxation (Currently Unavailable)

Author: James R. Hamill

The fastest growing tax reporting entity is the LLC taxed as a partnership. Tax practitioners now see partnership tax vehicles used by any type of taxpayer, including large corporations. The flexibility of partnership taxation has much to do with their use, but the distinctions between the “aggregate” and the “entity” approaches create significant uncertainty in many transactions. This session is “Part I” of a two-part program on partnership taxation. This session will review many of the basic provisions of subchapter K and will help prepare both staff and management for dealing with more complex partnership tax concepts. In this four-hour course, nationally recognized tax expert and instructor James Hamill, CPA, Ph.D., will explain the taxation of partnerships by use of commonly encountered transactions. The session will generally follow a “life cycle” approach, beginning with a review of what it means to be a partnership for tax purposes, the consequences of formation, and ending with the effects of distributions on both the partnership and the partners.

Publication Date: November 2019

Designed For
CPAs, EAs, tax preparers and other tax professionals with responsibility for assisting clients with partnership tax returns and tax-planning strategies.

Topics Covered

• Partnership: Aggregate Versus Entity Approach
• Partnership Classification and Formations
• Forming a Partnership
• Consequences of Partnership Formation
• Reporting Issues: Aggregate treatment of partners
• Debt Share Determinations
• Allocations of Profit and Loss
• §704(c) Depreciation Illustration
• Distributions from a Partnership Partnership
• Section 734 Adjustments
• Examples

Learning Objectives

• Determine the consequences of forming a partnership
• Identify key tax reporting issues
• Describe how to select an accounting period
• Identify how to articulate allocations of profit and loss
• Describe share of liabilities
• Recognize how to explain the rules affecting partnership distributions
• Describe the aggregate approach
• Identify how material participation applies
• Recognize what's included for a partner's at-risk basis
• Identify results of liquidating distributions
• Describe tax effect of a distribution in various client scenarios
• Recognize and apply Section 734 Adjustments
• Identify UBIA for Section 199A
• Recognize how recourse debt is presented
• Describe how 704(b) capital is recorded
• Differentiate true statements regarding nonrecourse deductions

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
Experience with Partnership Tax Returns

Advance Preparation
None