The mini course will examine tax issues relating to the formation and operation of partnerships. Participants will gain familiarity with basic areas of partnership taxation to recognize a problem and have at hand some practical knowledge for its solution. ASSIGNMENT
At the start of the materials, participants should identify the following topics for study:
* Partnership definition
* Partnership income
* Partnership tax return
* Year taxable
* Transactions between partner & partnership
* Contributions to partnerships
* Sales & exchanges of partnership interests
* Partnership distributions
* Partnership liquidations
* Limited liability companies
Learning Objectives
After reading the chapter, participants will be able to:
1. Recognize the tax treatment of partnerships specifying advantages and disadvantages and their effect on income attribution.
2. Determine partnership income and reporting requirements by:
a. Identifying filing requirements and the impact of partnership K-1s on individual or partner taxation; and
b. Specifying loss deduction limitations and stating the tax treatment of guaranteed payments, organizational expenses, and other fees.
3. Identify the tax treatment of contributions of property to a partnership under 721 and the impact on tax basis.
4. Recognize the tax treatment of partnership distributions and sale of partnership interests by:
a. Identifying the tax treatment of partner liabilities and of sales and exchanges of partnership interests and property; and
b. Determining the differences between liquidating and non-liquidating payments including the definition of a partners basis on such an event.
