Tax Fundamentals of LLCs and Partnerships - Tax Staff Essentials

Gain the technical knowledge and expertise to respond to the needs of new and existing clients.

• Public accounting staff and seniors
• Tax professionals in company finance or tax departments

• Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
• Recognize 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.
• Estimate the partner's or member's remaining basis in interest following a distribution of cash or property from the partnership or LLC.
• Distinguish 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.
• Recognize whether special allocations required under Section 704(c) have been made on a partnership or LLC tax return.

• Basic tax structure of partnerships and LLCs
• Electing to be taxed as a partnership: "Check-the-box" rules
• Tax consequences of a partnership or LLC formation
• Partnership distributions
• Compensatory payments to partners
• At-risk and passive activity limits
• Profit and loss allocations: General rules and restrictions
• Reporting taxable income for partnerships and LLCs