Partnerships are the fastest growing type of business entity. Understanding the finer points of tax preparation and planning for partnerships is a key part of all tax practices.
In this course, we’ll cover sophisticated strategies to keep you on the cutting edge, including self-employment tax for LLC members, allocating losses of limited liability companies, and admitting new partners in the most tax efficient manner.
Publication Date: December 2021
Topics Covered
- When should self-employment earnings be reported for an LLC member?
- Claiming bonus depreciation on §743 step-ups from purchases of partnership interests
- Avoiding the IRS's dangerous CPAR audit rules
- Transferring profits interests in partnerships without triggering taxation to new owners
- Allocating losses to LLC members under §704(b)
- Claiming bad debts for partner loans
- Deducting interest on loans made to purchase partnership interests or make loans to partnerships
Learning Objectives
- Identify partnerships that are able to elect out of the CPAR (centralized partnership audit regime)
- Recognize how to report self-employment earnings for LLC members
- Identify partnership clients that are eligible to elect out of the dangerous new IRS audit rules for partnerships (CPAR)
- Compute bonus depreciation on the purchase of a partnership interest
- Identify the number of ways to allow spouses to avoid CPAR treatment
- Recognize which type of entity had the greatest increase in returns filed from 1995 to 2013
- Identify the second step in the purchase and sale of real estate
- Identify the best option with respect to CPAR Partnerships audit rules
- Describe the three reasonable methods proposed by the Treasury, with respect to problems with §704(c)
- Recognize a type of SSTB where certain wage and property limits apply with respect to QBID
- Identify the phase-in range for single filing jointly taxpayers with respect to QBID
- Recognize which type of partnership expense payments is treated as a contribution to the partnership
- Identify a method of allocation between land and building
Level
Advanced
Instructional Method
Self-Study
NASBA Field of Study
Taxes (4 hours)
Program Prerequisites
Basic understanding of partnership taxation.
Advance Preparation
None
Instructor
Greg White
Greg White, CPA, taught for 14 years as an adjunct professor for Golden Gate University. He’s admitted to practice before the United States Tax Court. He is a founder and shareholder, in WGN PS in Seattle, WA. He has been named a Top 50 IRS Representation Practitioner in the U.S. by CPA Magazine and has taught for a number of professional organizations. Greg enjoys the technical side of tax, but also likes to have fun in class.