Preparing Form 1065: Part 2

Author: Greg White

In the second part of a two-part Form 1065 self-study program, experienced tax practitioner and instructor Greg White, CPA, will provide a detailed discussion of planning tips that can be adapted to partnerships and LLCs when filing a Form 1065 as well as an in-depth discussion of some of the more detailed elements of the Form itself. This will also include information of the Opportunity Zones and how they can help partners save on taxes.

Publication Date: December 2019

Designed For
Tax practitioners

Topics Covered

• Recap
• Final Regs
• CPAR "Imputed Underpayment"
• Electing Out of CPAR
• Eligible and Ineligible Entities
• Partnership Reps What Could Possibly Go Wrong?
• Form 1065, Page 3 "Qualified Opportunity Funds" Question 26
• Opportunity Zones
• Requirements: Real Estate Construction or Substantial Improvement
• Test: Percentage of Assets in Opportunity Zone
• Communication: You and Client/ Partnership and Partners
• Page 4, Schedule K
• Limited Partners
• LLC's
• SE Tax for LLCs and Case Law
• SE Tax for LLC Members
• §179 for Partnerships
• §179 Taxable Income Limit Includes Guaranteed Payments
• Form 1065, Page 5 Schedule L
• Page 5, Schedule M‐1
• Page 5 Schedule M‐2
• Schedules M‐3 and C
• Form 8825 — Rental Real Estate
• Importance of Separate Reporting
• Schedules K‐1
• Information about Partner
• Qualified Nonrecourse Financing
• Changes to K‐1 (Form 1065)
• §704(c)
• F 1065 Reconstruction
• QBID, K‐1, Disclosure
• Specified Service Trades or Businesses: Guard rails
• Other Forms

Learning Objectives

• Describe and properly prepare the necessary schedules and related forms for Form 1065
• Recognize and apply the need to file forms M-1, M-2, and M-3
• Differentiate between recourse and nonrecourse loans and how they impact individual partners' taxation
• Identify the at-risk rules for LLCs
• Recognize and apply the rules for the Qualified Business Income Deduction under the Tax Cuts and Jobs Act of 2017
• Identify tax benefits related to the opportunity zones and how they apply to your clients
• Identify advantages of investing in qualified opportunity funds
• Describe and apply line items and deductions on Schedule K
• Recognize the tests that must be met under the proposed regulations related to the true limited partner exception to self-employment tax
• Identify one of the relationships Dr. Hardy had with the surgical center
• Describe which statements are correct with respect to Schedule L
• Differentiate each schedules purpose and how they apply
• Describe correct statements regarding Schedule M-2
• Recognize situations where a Schedule M-3 needs to be filed
• Identify types of income or expense should be included on Form 8825 related to rental real estate
• Describe the percentage the Section 199A deduction (i.e., QBID) allows for a deduction on qualifying business income

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
None

Advance Preparation
None