New Form 1065 Requirement: Computing Tax Basis Capital Accounts (Completed)

Beginning in 2020 Form 1065, we’ve got a new reporting requirement. Capital accounts as shown on Form K-1 will have to be reported on a tax basis (as opposed to GAAP or §704(b)). We’ll cover the issues you need to know:
• How do you compute tax basis capital accounts for this purpose?
• What do you do if you lack sufficient information to compute the current capital account balances?
• Which partnerships will not be subject to this requirement?

Who Should Attend
Practitioners advising partnership clients.

Topics Covered

• Practical methods to compute tax basis capital accounts
• Quick identification of partnerships not subject to these rules

Learning Objectives

• Identify partnerships subject to the new rules
• Identify how to compute partnership capital accounts
• Recognize how to navigate complex issues (Sec. 743 step ups, etc.)

Level
Update

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
Basic understanding of Form 1065.

Advance Preparation
None