Partnership/LLC Taxation: 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. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics that will be 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

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.

Objectives

After attending this presentation you will be able to...

• Apply recent tax developments affecting the partnership entity and its partners

Preparation

None