Author: Greg White
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?
Publication Date: September 2020
Designed ForPractitioners advising partnership clients.
NASBA Field of Study
Taxes (1 hour)
Program PrerequisitesBasic understanding of Form 1065.