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.

Highlights

• 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

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

Preparation

None