Partnership/LLC Taxation: Understanding Tax Basis Capital Accounts

Overview

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. 

*Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Coursw Materials Tab and submit to kori.herrera@acpen.com

Highlights

• Discussion of the impact of the Section 199A flow-through entities deduction on partnerships and their partners
• The meaning of a "tax basis capital account" - how do the financial accounting and tax capital accounts differ from one another
• How to determine a partner's share of the partnership's liabilities
• Distinguishing "recourse" loans from "nonrecourse" loans
• What are "qualified nonrecourse financing" & loans and how they affect partners
• Section 704 "built-in gain or loss" & ules and how they impact Schedule K-1 reporting
• Section 465 "at risk" rules and how they impact Schedule K-1 reporting 

Prerequisites

Basic working knowledge of business and partnership taxation

Designed For

CPAs in public practice and industry seeking an update on the latest tax developments impacting partnerships and LLCs

Objectives

• Identify recent changes impacting the partnership entity and its partners
• Apply rules for reporting partner tax basis capital accounts
• Apply planning opportunities
• Identify potential pitfalls

Preparation

None