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Instructor
Deborah Phillips
Instructor
This webcast provides you with a thorough review of the fundamental concepts. We’ll address the tax consequences of the most common transactions engaged in by LLCs and partnerships. You will receive practical guidance on the basic conceptual framework underlying partnership and LLC taxation with an emphasis on explaining the tax consequences most frequently confronted by tax practitioners. We include materials on the impact of the Tax Cuts and Jobs Act of 2017 (TCJA) tax reform law.
• Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
• Calculate 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.
• Calculate the partner’s or member’s remaining basis in his or her interest following a distribution of cash or property from the partnership or LLC.
• Calculate the amount of the guaranteed payment when the partner is to receive the lesser of a fixed dollar amount or a fixed percentage of partnership income.
• Distinguish the difference between “book” allocations required under Section 704(b) and “tax” allocations required under Section 704(c).
• Identify the potential economic consequences to a partner or LLC member of a special allocation.
Key Topics
– Basic tax structure of partnerships and LLCs
– Electing to be taxed as a partnership: The “check-the-box” rules
– Tax consequences of partnership or LLC formation
– Partnership distributions
– Compensatory payments to partners
– At-risk and passive activity limits
– Profit and loss allocations: general rules and restrictions
– Reporting taxable income for partnerships and LLCs
Tax professionals