Partnerships allow partners to reach an agreement with respect to the allocation of items of income, gain, deduction, and loss — provided the agreement has substantial economic effect. Regulations finalized in 1985, at the height of the tax shelter days, provide several “safe harbors” to the structure of allocations that comply with the economic effect test. These regulations require that the partnership liquidate based on capital accounts and have largely driven the form of most partnership agreements.
After the passive loss rules eliminated the classic tax shelter arrangement, many advisors looked for alternative structures that focused on how partners would distribute money and property, and then use the distribution arrangement to determine allocations of partnership items. These arrangements are often called “targeted” allocations as they use allocations to hit a target capital account. The agreement itself does not prescribe a particular allocation scheme, but instead forces the tax return preparer to make allocations that tie capital to the agreed-to distribution scheme.
Join nationally recognized tax practitioner, instructor and commentator James Hamill, CPA, Ph.D., for this two-hour CPE webinar that provides a practical review of how to make partnership allocations based on a targeted allocation agreement. This program makes liberal use of specific examples to illustrate the “how to” of targeted allocations.
NOTE: Unlike many other programs, this class does not focus on how to draft a targeted allocation clause. As such, it is designed for the preparer of a partnership tax return.
All professionals involved with partnership tax compliance and planning matters will benefit from this insightful seminar. The course presentation time will include opportunities for you to ask questions directly to Dr. Hamill.
As our “thank you for attending” gift, firms registered for this seminar will receive a complimentary issue of Wolters Kluwer’s Journal of Passthrough Entities in electronic format.
Who Should AttendCPAs, EAs, tax preparers and other tax professionals with responsibility for partnership tax return compliance
Instructional MethodGroup: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program PrerequisitesExperience with partnership tax returns