Partnership & LLC Tax Workshop (Basic)

General Description:

This one-day course will review the applicable partnership provisions of subchapter K which are necessary in preparing a Form 1065. The program is designed to give the participant the necessary knowledge to complete a Form 1065.

Learning Objective:

After completing this course the participant will be able to:

• Describe common partnership classification problems, including check-the-box regulations and how to treat a one-member or two-member LLC.
• Explain the tax rules regarding formation of a partnership, including the contribution of property subject to a debt, disguised sales, and receipt of a capital or profits interest for services.
• Identify the required taxable year and when a partnership is restricted to the accrual method.
• Describe the tax aspects of various operating problems, including preparing a Form 1065, determining a partner's basis in its interest, determining maximum amount of loss that is deductible, fringe benefits, deduction of unreimbursed out-of-pocket expenses, organizational expenses, interest expenses, calculating the deduction under §199A for qualified business income, and filing Schedules K-2 and K-3.
• Describe the penalty for late filing a Form 1065 and how to elect out of the partnership audit rules.
• Apply the passive activity loss rules and the self-charged interest provisions, including the grouping rules of Rev. Proc. 2010-13.
• Describe the tax effects of transactions between a partner and a partnership, including recharacterization of gain as ordinary income, disallowance of losses, deducting amounts owed to a partner, guaranteed payments, guaranteed minimums, and calculation of self-employment income.
• Summarize the types of special allocations under §704(b)(2) and allocating partnership debt under the §752 regulations.
• Describe when the income of a partnership is subject to self-employment tax.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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