Advanced Partnership Taxation Concepts
Author: Greg White
| CPE Credit: |
5 hours for CPAs
5 hours Federal Tax Related for EAs and OTRPs
5 hours Federal Tax Law for CTEC |
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.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN cardPublication Date: October 2025
Designed For
Tax professionals who want a deeper understanding of complex topics in the partnership area.
Topics Covered
- Bonus depreciation on partner step-ups
- Converting nondeductible personal interest expense to deductible business interest expense
- Self-employment tax of LLC members
- Electing out of CPAR
- "Drop and swap" like-kind exchanges
- Tax-free partner compensation via "profits interests"
- Switching a single-member LLC to a partnership
- Contributions of appreciated property to partnerships
- Allocations of losses to partners
- QBID planning for partnerships
- Business bad debts for partner loans
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)
- State how to compute bonus depreciation on the purchase of a partnership interest
- Identify the §704(c) allocation method that would generally be least favorable to the contributing partner
- Identify the approximate cost of a “questionnaire-style” cost segregation study
- Identify the number of potential options that exist under the CPAR Partnership Audit Rules
- Identify the allocation method that determines results based on an evaluation of all relevant facts and circumstances
- Identify the percentage of partnership interests that are eligible for like-kind exchange treatment under §1031
- Identify the number of separate tests that apply when determining whether a member qualifies under the true limited member exception
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (5 hours)
Program Prerequisites
Basic understanding of partnership taxation.
Advance Preparation
None
