Self-Study

Partnership and LLC Core Tax Issues From Formation Through Liquidation

  • Wednesday, May 1, 2024 – Wednesday, April 30, 2025

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  • 8.00
    CREDITS
    Taxes

As they gain more experience, staff are expected to take on more complex assignments with minimal supervision. The course is designed to be a stepping stone for staff interested in pursuing more advanced partnership and LLC issues than mere preparation, via deeper life-cycle study into critical areas of formation, special allocations of income and deductions, basis calculations and implications of recourse and nonrecourse debt, basis step-up under 754 on transfer of an ownership interest, distributions, self-employment tax issues, and termination/liquidation of the LLC. With the right blend of legal and tax ramifications of LLC-specific issues, this course identifies all the major areas that are potential sources of increased complexity.

Objectives

  • Prepare more complicated partnership returns
  • Understand certain advanced concepts of partnership taxation

Highlights

  • Reporting requirements for Schedules K-2 and K-3
  • Capital account reporting requirements
  • Schedule K-1 reporting for §743 adjustments
  • Schedule K-1 reporting for §704 gains and losses
  • Comprehensive case on partnership/partner application of the business interest deduction
  • When to use “704(b) basis” for capital accounts versus “tax basis”
  • Detailed rules of §704 for preventing the shifting of tax consequences among partners or members
  • Unreasonable uses of the traditional & curative allocation methods
  • Multiple layers of §704(c) allocations
  • Treatment of recourse versus nonrecourse debt basis
  • How to calculate basis limitations and its implication on each partner’s own tax return
  • How §179 limitations affect partnership/LLC basis
  • Regulations for handling basis step-ups under §754 elections, and mandatory adjustments under §743 and §734 for partnerships who have NOT made the §754 election
  • Subsequent contributions of property with §754 adjusted basis to another partnership or corporation
  • Capital account adjustments in connection with admission of new member
  • Special allocations require "substantial economic effect"; what are the requirements?
  • LLCs and self-employment tax to the members
  • Distributions -- current or liquidating, cash or property including the substituted basis rule
  • Termination/liquidation of an LLC

Additional Information

Designed For

Experienced Accounting and Financial Professionals desiring a comprehensive case approach to understand reasonably complex limited liability company issues and problems; also, Accounting and Financial Professionals who want a comprehensive, intermediate-l

Vendor

Surgent

Advanced Preparation

None

Credits

8.00 Taxes

Prerequisite

Knowledge and experience in business taxation

Course Number

2432917

Level of Knowledge

Intermediate

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