Form 1065 K-1s: IRS Throws Rocks at Hornets’ Nest (Currently Unavailable)

Author: Bradley Burnett

On recent IRS Forms 1065, Schedules K-1 and in related instructions, IRS is launching massive new reporting requirements re: negative tax basis capital accounts, at-risk activities, passive activities, partner level built-in gains, disregarded entities and many more. Chaos has resulted. IRS has backed off some, but massive new disclosures remain. We can’t wait to be a deer in the headlights preparing Form 1065 and Schedules K-1.

Publication Date: November 2020

Designed For
Return preparers, tax planners and taxpayers desiring to keep up with federal partnership income tax reporting.

Topics Covered

• 2020 Form 1065 and K”1
• Disregarded entity partners
• 3 year average annual gross receipts test
• Capital accounts
• Basis in partner's partnership interest
• Disguised sales
• §704(c) Built”in gains and loss
• Aggregation of at”risk activities
• Grouping of passive activities
• . Miscellaneous

Learning Objectives

• Recognize the substantive law depth behind and consequences of new partnership and related K-1 disclosures
• Identify types of disregarded entities
• Identify a reason why the IRS cares about negative capital account reporting
• Describe examples of a disguised sale
• Identify a loss limitation hurdle post-TCJA
• Recognize which components are added in order to arrive at a partner's adjusted capital account balance
• Identify what does not result in a negative capital account
• Recognize what a partner's at-risk amount generally includes
• Identify the first step in considering the passive activity loss rules

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None