Reviewing Partnership Tax Returns: What Are You Missing?

Strategies to help reviewers catch errors in partnership and LLC tax returns before they are submitted.

Objectives

• Identify the mechanics of a partnership's tax return, including partner capital account calculations and permissible tax years.
• Determine the proper allocation of recourse liabilities among partners.
• Analyze the consequences of a new partner joining a partnership.
• Determine depreciation expense among the contributing and noncontributing partners under Section 704(c).
• Determine the value of assets with nonrecourse liabilities.

Highlights

Common errors made involving the following:

Form 1065 Schedules K and K-1 Schedules M-1 and M-2 Calculating recourse and nonrecourse liabilities Partner inside and outside basis Partner's capital account analysis Sections 704(b), 704(c), 721, 722, 732(b), 734(b), 737, 743(b)

Who Will Benefit

Partners and managers in CPA firms Experienced CPA staff

Credits

Category	Amount
Tax	4.00