Tax Fundamentals of LLCs and Partnerships

LLC and partnership taxation are considered by many one of the most complex areas of our Internal Revenue Code. If you are new to the subject, or if you have worked in this area for years but need a quick review, this course will provide a firm grasp of the fundamental concepts, help you to build a strong foundation of knowledge and freshen up your skills.

This course addresses the tax consequences of the most common transactions engaged in by LLCs and partnerships. Develop a level of comfort with the basic conceptual framework underlying partnership and LLC taxation, with an emphasis on explaining the tax consequences associated with issues that are most frequently confronted by tax practitioners.

Learning Objectives

Learning Objective: 

When you complete this course you will be able to:

  • Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
  • Indicate how investors in partnerships and LLCs report their shares of entity income and loss for tax purposes, and how those shares affect the basis of their investments in the entity.
  • Calculate the tax basis of assets transferred to a partnership or limited liability company (LLC) at formation.
  • Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation.
  • Determine the basis in the investor’s hands of property received as a distribution from a partnership or limited liability company (LLC).
  • Indicate the effects of liabilities assumed by a partner or LLC member in connection with a property distribution.
  • Determine whether payments to a partner will be treated as guaranteed payments, distributive shares, or payments to a third party.
  • Recognize the tax treatment, both at the partner and the partnership level, of guaranteed payments to a partner.
  • Calculate the basis and amount at risk in a partnership or LLC interest for purposes of the passive loss limitation rules.
  • Determine whether special allocations called for in a partnership agreement will be allowable under the Section 704(b) regulations, and when they will not be recognized by the IRS.

Topics Discussed

Topics Discussed: 
  • Basic tax structure of partnerships and LLCs
  • Tax consequences of partnership or LLC formation
  • Partnership distributions
  • Compensatory payments to partners
  • At-risk and passive activity limits
  • Profit and loss allocations: general rules and restrictions

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COURSE CODE

TSE.TFLP

FIELD OF STUDY

Taxes

CPE CREDIT HOURS

8

KNOWLEDGE LEVEL

Basic

INTENDED AUDIENCE

Public accounting staff, seniors, supervisors, and tax professionals in company finance or tax departments

PREREQUISITE

None

ADVANCED PREPARATION

None

DELIVERY METHOD

Group Live
Webcast
Self-Study On-Demand

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(U.S.) AICPAstore.com

(Outside the U.S.) CGMAstore.com


CONTACT A TRAINING REPRESENTATIVE:


1-800-634-6780 Option 1
aicpalearning@aicpa.org