Partnership/LLC Taxation: Tax Basis Capital Accounts

Overview

Description:
This program addresses the most recent developments impacting partnerships operating as LLCs, with a focus on legislative, administrative, and tax form changes. Emphasis will be placed on partners "tax basis" capital accounts, now required for tax form reporting.

Learning Objectives:
After attending this presentation you will be able to...

Apply recent tax developments affecting the partnership entity and its partners

Program Content:

The major topics covered in this class include:

Discuss the impact of the Section 199A flow-through entities deduction on partnerships and their partners
The meaning of a "tax basis capital account"
How the financial accounting and tax capital accounts differ from one another
Determine a partner's share of the partnership's liabilities
Distinguish "recourse" loans from "nonrecourse" loans
What are "qualified nonrecourse financing" loans and how they affect partners
Section 704 "built-in gain or loss" rules and how they impact Schedule K-1 reporting
Section 4655 "at risk" rules and how they impact Schedule K-1 reporting

Who should attend: CPAs in public practice and industry seeking an update on the latest tax developments affecting partnerships.

Developed By: Federal Tax Workshops, Inc

Instructor: Steven C. Dilley, CPA, JD, PhD

CPE Credit: 2.0

Field of Study: Taxes (2 CPE)

Prerequisites: Basic working knowledge of partnership taxation.

Advanced Preparation: None

Format: QAS Self Study

Highlights

Discuss the impact of the Section 199A flow-through entities deduction on partnerships and their partners
The meaning of a "tax basis capital account"
How the financial accounting and tax capital accounts differ from one another
Determine a partner's share of the partnership's liabilities
Distinguish "recourse" loans from "nonrecourse" loans
What are "qualified nonrecourse financing" loans and how they affect partners
Section 704 "built-in gain or loss" rules and how they impact Schedule K-1 reporting
Section 4655 "at risk" rules and how they impact Schedule K-1 reporting

Prerequisites

Basic working knowledge of partnership taxation.

Designed For

CPAs in public practice and industry seeking an update on the latest tax developments affecting partnerships.