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Training for Business Professionals
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.
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
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
- Formation issues including the mandatory allocation of the §704(c) pre-contribution gain or losses back to the contributing
- 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
Partnership Preparation, Basis Calculations & Distributions–Form 1065 Schedule K & K-1 Analysis
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: