LLC and partnership taxation are considered by many one of the most complex areas of our Internal Revenue Code. If you are new to the subject, or if you have worked in this area for years but need a quick review, this course will provide a firm grasp of the fundamental concepts, help you to build a strong foundation of knowledge and freshen up your skills.
This course addresses the tax consequences of the most common transactions engaged in by LLCs and partnerships. Develop a level of comfort with the basic conceptual framework underlying partnership and LLC taxation, with an emphasis on explaining the tax consequences associated with issues that are most frequently confronted by tax practitioners.
Basic tax structure of partnerships and LLCs, Tax consequences of partnership or LLC formation, Partnership distributions, Compensatory payments to partners, At-risk and passive activity limits, Profit and loss allocations: general rules and restrictions
Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest. Indicate how investors in partnerships and LLCs report their shares of entity income and loss for tax purposes, and how those shares affect the basis of their investments in the entity. Calculate the tax basis of assets transferred to a partnership or limited liability company (LLC) at formation. Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation. Determine the basis in the investor’s hands of property received as a distribution from a partnership or limited liability company (LLC). Indicate the effects of liabilities assumed by a partner or LLC member in connection with a property distribution. Determine whether payments to a partner will be treated as guaranteed payments, distributive shares, or payments to a third party. Recognize the tax treatment, both at the partner and the partnership level, of guaranteed payments to a partner. Differentiate the limitations that apply to partners’ or limited liability company (LLC) members’ distributive share of losses from those of a partnership or LLC. Calculate the basis and amount at risk in a partnership or LLC interest for purposes of the passive loss limitation rules. Determine whether special allocations called for in a partnership agreement will be allowable under the Section 704(b) regulations, and when they will not be recognized by the IRS. Identify the potential economic consequences to a partner or LLC member of a special allocation. Recognize what information should be disclosed on a Schedule K-1 received from a partnership or LLC.
Steven B. Wagner is a principal at Forehling Anderson in Minneapolis, Minnesota and practices in the tax department assisting clients with a variety of matters. He also serves as an expert witness in taxation litigation proceedings. He has been an instructor for taxation courses for associations and state CPA societies and consistently receives high evaluations for his technical expertise and his practical application of tax law to real world situations. He was named a “Super CPA” by Minnesota Law and Politics and Twin Cities Business Monthly. He has also been a repeat speaker on advanced tax topics for the Minnesota and South Dakota annual tax conferences. Wagner was previously a partner in charge of the tax practice of a local CPA firm where he practiced in the area of taxation since 1988. He has extensive accounting, tax, and business experience in the servicing of various size companies, as well as individuals. His core industry focus has included growth businesses, professional service organization, retail, manufacturing, real estate development investments, and financial institutions.
Non-Member Price $349.00
Member Price $249.00