Acquire the basic skills you need to prepare income tax returns for LLCs and Partnerships. This course helps you identify the information required from the accounting system and the questions to ask of managers or business owners. This course will provide you with a foundation of tax principles and rules applicable to flow through entities under IRC section subchapter K.
Formation and the Check-the-Box rules
Profit and loss allocations
Effect of liabilities
Contributions and distributions
Reporting taxable income
When you complete this course you will be able to:
Recognize differences among the various types of partnerships and an LLC.
Describe how partnerships and LLCs opting to be treated as partnerships will report their federal taxable income to the IRS.
Determine the tax basis of assets transferred to a partnership or LLC at formation.
Explain the tax consequences and liabilities to a partnership/LLC of property transfers.
Distinguish between distributions and compensatory payments to partners and recognize tax consequences of each type of payment.
Apply the at-risk and passive activity loss limitations to pass-through losses from partnerships and LLCs.
Prerequisite: Basic knowledge of pass-through entities