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© Phoenix Beach, LLC 

Training for Business Professionals

Who Should Attend?
Tax professionals that need an in-depth training course on tax preparation issues, basis calculations and distributions rules for partnerships, LLCs and their owners.


Area of Study:
Taxation

Level:
Intermediate


Credit:
8 hours

Prerequisite:
None

Advance Preparation:
None

Type:
Group Live


Date Available:
June 1

Course code:

PBAD

This comprehensive training is designed to get the accountant up to speed quickly with partnership and limited liability company (LLC) formation and preparation issues as well as a complete understanding of calculating a partner and LLC member’s basis. The cornerstone of this course is the in-depth line-by-line analysis of the Form 1065 Schedule K and K-1 and how these items affect the partner/member’s individual income tax return.

Learning Objectives:

Once participants have completed this session they should be able to:

  - Form a partnership and calculate the partnership’s initial inside basis in the assets and partner’s outside basis in the entity

  - Prepare a basic partnership (Form 1065) Schedule K including the reporting of cash and non-cash distributions

  - Understand how the schedule K items get allocated to the partners/members on their individual Schedule K-1

  - List the three main reasons for calculating a partner/member’s basis in a partnership/LLC

  - Calculate a partner/member’s outside basis and determine if losses and deductions are limited on their individual income 
  ​  tax return


Course Highlights:
Each attendee will receive the most comprehensive reference manual with numerous practice aids and real world examples and case studies. Topics include but are not limited to:

  - Detailed coverage of the Tax Cuts & Jobs Act (TCJA) affecting partnerships 


   - Review the Form 1065 to learn how income statement items get reported on the partnership/LLC tax return (i.e. page 1
    ​versus Schedule K) and flow-thru to the partner/members on Schedule K-1

  - Analyze the Schedule K-1 line-by-line and discuss where the items get reported on the individual’s Federal income tax
   ​ return and how the items affect the partner/member’s outside basis

  - Look at what relevant information related to the 3.8% net investment income tax needs to be reported to the
   ​ partners/members

  - Formation issues including the mandatory allocation of the §704(c) pre-contribution gain or losses back to the contributing
  ​  partner/member

  - The purpose of tax and §704(b) book capital account

  - Reporting recourse and non-recourse debt on the Schedule K-1

  - Tax ramifications and reporting of cash and non-cash distributions including disproportionate distributions of “hot
   ​ assets”Overview of the §754 election for optional basis adjustments triggering §743 (transfer of interests) and §734
   ​ (distributions)

Partnership Preparation, Basis Calculations & Distributions–Form 1065 Schedule K & K-1 Analysis