A beginner's guide or a refresher on the essential elements of partnership and LLC taxation.
Objectives
- Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
- Identify the tax basis of assets transferred to a partnership or limited liability company (LLC) at formation.
- Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation.
- Indicate the correct treatment of partnership income by a partner for self-employment tax purposes.
- Distinguish between current and liquidating distributions.
- Recall whether special allocations called for in a partnership agreement will be allowable under the Section 704(b) regulations and when they will not be recognized by the IRS.
Highlights
Basic tax structure of partnerships and LLCs
Check-the-box elections to be taxed as a partnership
Partnership distributions
Compensatory payments to partners
At-risk and passive activity limits
Profit and loss allocations: general rules and restrictions
Who Will Benefit
Public accounting staff and seniors
Tax professionals in company finance or tax departments
