Advanced Partnership Taxation Concepts

Author: Greg White

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 2019

Topics Covered

• Spousal partnership
• Bonus depreciation on partner section 743 step-ups
• Self-employment taxation of LLC members
• Avoiding issues under the new IRS audit rules that apply to partnerships (CPAR)
• Structuring the admission of new partners in a tax efficient manner
• Picking the most beneficial method of allocation under section 704(c) for your client
• The tax advantage of partnerships under section 199A (the QBID)

Learning Objectives

• Determine most tax efficient manner of admitting new partners
• Identify LLC members who are subject to self-employment tax
• Compute the proper loss allocation to LLC members once their capital accounts are reduced to zero
• Differentiate which court case was overturned on appeal due to a procedural matter
• Describe correct statements regarding the trends in the type of entity from 1995 to 2013
• Identify the steps in the purchase and sale of real estate
• Recognize which IRS form an entity that seeks to elect out of the CPAR requirements entirely may do so by appropriately filing should use
• Describe which referenced tax sections was compared to online dating
• Recognize which income allocation method does not require unlimited DRO
• Identify the full phase in amount related to the QBI deduction for single filers in 2019
• Identify the most common and most effective type of partnership payment
• Identify the number of ways to allow spouses to avoid partnership treatment
• Identify the starting point with respect to §705(b)
• Identify the exit ramps with respect to CPAR

Level
Advanced

Instructional Method
Self-Study

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
Basic understanding of partnership taxation.

Advance Preparation
None