Partnership/LLC Taxation: Understanding Tax Basis Capital Accounts

Overview

This program addresses the most recent developments impacting partnerships operating as LLCs, with a focus on legislative, administrative, and tax form changes. Emphasis will be placed on partners "tax basis" capital accounts - now required for tax form reporting. 

*Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Coursw Materials Tab and submit to kori.herrera@acpen.com

Objectives

• Identify recent changes impacting the partnership entity and its partners
• Apply rules for reporting partner tax basis capital accounts
• Apply planning opportunities
• Identify potential pitfalls

Highlights

• Discussion of the impact of the Section 199A flow-through entities deduction on partnerships and their partners
• The meaning of a "tax basis capital account" - how do the financial accounting and tax capital accounts differ from one another
• How to determine a partner's share of the partnership's liabilities
• Distinguishing "recourse" loans from "nonrecourse" loans
• What are "qualified nonrecourse financing" & loans and how they affect partners
• Section 704 "built-in gain or loss" & ules and how they impact Schedule K-1 reporting
• Section 465 "at risk" rules and how they impact Schedule K-1 reporting