Tax Fundamentals of LLCs and Partnerships - Tax Staff Essentials

Overview

A beginner’s guide or a refresher on the essential elements of partnership and LLC taxation.

Most U.S. businesses are formed as a pass-through entity, which includes partnerships. If you are new to the subject, or if you have worked in this area for years but need a quick review, this course will provide a firm grasp of the fundamental concepts, help you to build a strong foundation of knowledge, and freshen up your analytical skills. Talking about tax can sometimes sound like you’re speaking a foreign language in front of your clients. You can leverage the tone of the course materials to explain complex issues with accuracy and confidence.

Course Instructor: Deborah Phillips

Highlights

Basic tax structure of partnerships and LLCs

Electing to be taxed as a partnership: "Check-the-box" rules

Partnership distributions

Compensatory payments to partners

At-risk and passive activity limits

Profit and loss allocations: general rules and restrictions

Prerequisites

None

Designed For

Public accounting staff and seniors

Tax professionals in company finance or tax departments

Objectives

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 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 their 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 between "book" allocations required under Section 704(b) and "tax" allocations required under Section 704(c).
Identify the potential economic consequences of a special allocation to a partner or LLC member.

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by AICPA. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.