CPE: 8 hours
Prerequisites: Five or more years of tax experience.
Advanced prep: None
Who should attend: CPAs who advise clients on planning for partnership or LLC transactions, or those who have review responsibility in the partnership or LLC tax compliance function.
This best-selling course will prepare you to help your clients plan partnership and LLC transactions to minimize taxes. We'll cover allocation of basis in debt to step-up in basis upon transfer; disguised sales; abandonment of partnership interest; reallocation of depreciation among partners; reporting income from forgiveness of indebtedness; how to determine an LLC member' self-employment income; and more.
- Recognize tax traps and pitfalls in the organization and operation of partnerships and LLCs.
- Calculate the special allocations required for Section 704(c) property.
- Identify common ownership changes.
- Identify and apply rules properly when passing income and other items through owners.
- Determine how to properly plan and account for income from forgiveness of debt.
- Identify how to handle the balance sheet after required tax adjustment.
- Special tax considerations when organizing a partnership
- Sec. 721: Contributions of property to capital
- Sec. 752: Liabilities and their allocation to owners
- Sec. 704(b): Determination of owners' distributive share, including special allocations
- Sec. 704(c): Adjustments for contributed property
- Sec. 754 election: Optional adjustments to the basis of entity property
- Sec. 751: Distribution of assets
- Sec. 736: Payments to a retiring partner or member
- Current court developments and IRS rulings