Field of Study:
The program will examine tax issues relating to the formation and operation of partnerships. Participants will
gain a familiarity with basic areas of partnership taxation so as to recognize a problem and have at hand some
practical knowledge for its solution. This course is presented in four practical segments: (1) the formation of
partnerships, (2) the basic day-to-day operations of partner-ships, (3) distributions of assets to partners,
and (4) the termination of partner-ship affairs.
After completing this course you will be able to:
- Determine what constitutes a partnership for federal income tax purposes under §761(a).
- Recognize the impact of partnership agreements on partners’ shares of tax items.
- Identify the complete or partial exclusion from partnership treatment under §761.
- Recognize the allocation of income and deduction among partners.
- Identify when a partnership or its partners are subject to income or es-timated tax.
- Specify the types of separately stated partnership expenses.
- Identify a partnership’s year taxable under §706(a) and the allocation of items of income and deduction from the partnership to the partners.
- Identify transactions between a partner and a partnership as being between a stranger and a partnership or as guaranteed payments.
- Recognize the tax-free capitalization rules of §721.
- Determine a partnership’s basis for contributed assets under §723.
- Specify the taxation of contributed services noting strategies to avoid immediate taxation.
- Determine the original and adjusted basis of an interest acquired by contributing property and/or money under §722.
- Recognize a partner’s loss deduction when the limits on deductions of partnership losses apply.
- Determine capital asset treatment on the sale or disposition of a partnership interest under §741.
- Recognize the tax treatment of a sale or exchange of a partnership interest.
- Specify optional basis adjustment provisions.
- Determine the treatment of distributions of cash or property by a partnership to the partners.
- Determine ways to liquidate a retiring partner’s interest.
- Identify a withdrawing partner’s basis when there are distributions in liquidation or in nonliquidation.
- Determine the taxation of limited liability companies noting the variety of tax entity choices and their advantages and disadvantages.
- Identify ways to use an LLC noting business-planning opportunities, and specify business ventures that should avoid LLCs.
- Recognize the federal tax consequences of establishing an LLC.
- Identify the dangers and tax consequences in converting to an LLC from another form of entity.
- Recognize the potential assessment of sales and use tax, real property taxes, and real property transfer taxes on entities on conversion to an LLC.
General understanding of federal income taxation.
Type of Delivery Method:
Recommended CPE Credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and the final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org