LLC and Partnership Taxation: Beyond the Basics

• Chapter 1 - Allocation of Partnership and LLC Income under Section 704(b)
  • Learning Objectives
  • Introduction
  • Economic Effect: The General Test
    • General Requirements
    • Maintenance of Capital Accounts
    • Section 704(b) vs. GAAP
    • Treatment of Liabilities
    • Liquidating Distributions
    • Restoration of Deficit Capital Balances
  • Deemed Economic Effect
  • Alternate Test for Economic Effect
    • Rationale
    • Requirements
    • Qualified Income Offset - Correcting Inadvertent Errors
    • Partial Economic Effect
    • Adjusted Capital Accounts
  • Substantiality
    • Overview
    • Shifting Tax Consequences
    • Transitory Allocations
    • Transitory Allocations vs. Shifting Tax Consequences
    • Overall Tax Effects Test
  • Denied Allocations: Determining the Partners' or LLC Members' Interests in the Entity
    • In General
    • No Deficit Restoration Requirement
  • Other Issues
    • Distributions of Partnership Property
    • Section 734(b) Adjustments
    • Transfers of Partnership Interests
    • Optional Revaluation of Partnership Property
    • Determining Fair Market Value
  • Allocation of Deductions Attributable to Nonrecourse Debt
    • Overview
    • Nonrecourse Deduction Defined
    • General Requirements for Economic Effect
    • Consistency with Other "Significant" Items
    • Minimum Gain Chargeback
  • Summary
  • Questions
• Chapter 2 - Allocations with Respect to Contributed Property: Section 704(c)(1)(A)
  • Learning Objectives
  • Introduction
  • The Traditional Method
    • Allocations of Tax Gain or Loss
    • Cost Recovery Deductions
    • Depreciation Methods
    • Anti-Abuse Provision
    • The Ceiling Rule
    • Nontaxable Dispositions
  • The Traditional Method with Curative Allocations
  • The Remedial Allocations Method
    • Mechanics
    • Computation of Book Items
  • Special Rules
    • Section 704(b) Revaluations
    • Small Disparities
    • Aggregation of Properties
    • Tiered Partnerships
  • Summary
  • Questions
• Chapter 3 - Allocation of Partnership Recourse Liabilities under Section 752
  • Learning Objectives
  • How Liabilities Affect Partner Tax Consequences
    • Basic Concepts
    • Transactions that Change Partners' Shares of Partnership Liabilities
    • Effect of Liabilities on Partners' and LLC Members' Amounts at Risk
  • Allocation of Liabilities among the Partners - In General
    • Recourse vs. Nonrecourse Liabilities
  • Allocation of Recourse Liabilities
    • General Rules - "Constructive Liquidation"
    • Limited Partners
    • Book vs. Tax Capital Accounts
    • Effect of Partner Guarantees
    • Special Allocations of Partnership Income and Loss
  • Questions
• Chapter 4 - Allocation of Partnership Nonrecourse Liabilities and Related Deductions under §§752 and 704(b)
  • Learning Objectives
  • Distinguishing between Recourse and Nonrecourse Liabilities
    • Obligation to Make Payment
    • Partner Guarantee of Interest on Nonrecourse Loan
    • Partner Providing Collateral for a Partnership Nonrecourse Loan
    • Nonrecourse Loans by Partners
    • "Wrapped" Debt
    • De Minimis Exceptions
  • Allocation of Nonrecourse Debts
    • Conceptual Difficulties in Allocating Nonrecourse Liabilities
    • Nonrecourse Liabilities Allocated by Reference to Partners' Profits Interests
    • Minimum Gain
    • Tax vs. Book Minimum Gain
    • Other Partnership Profits
  • Allocation of Deductions Attributable to Nonrecourse Debt
    • Overview
    • Nonrecourse Deduction Defined
    • General Requirements for Economic Effect
    • Consistency with Other "Significant" Items
    • Minimum Gain Chargeback
  • Treatment of Contingent Liabilities
    • General
    • Mechanics
    • Sale or Transfer of Interest in Partnership or LLC
    • Liquidating Distribution to §1.752-7 Partner or Distribution of Property Secured by §1.752-7 Liability to Another Partner
    • Exceptions
  • Questions
• Chapter 5 - Advanced Distribution Rules
  • Learning Objectives
  • Non-Liquidating Distributions Generally
    • Non-Cash Distributions
    • Cash Distributions
    • Receipt of Cash and Property
  • Distribution of Multiple Properties
    • Decrease in Basis of Unrealized Receivables and/or Inventory
    • Decrease in Basis of Other Assets
    • Liquidating Distributions
    • Allocating an Increase in Basis among Multiple Properties - Ordinary vs. "Other" Assets
    • Allocating an Increase in Basis among Multiple "Other" Assets
  • Summary
  • Questions
• Chapter 6 - Adjustments to the Basis of Partnership/LLC Assets
  • Learning Objectives
  • Introduction
  • Section 743 - Adjustments Following the Transfer of a Partnership Interest
  • Distributions of Partnership Property
    • Situation 1 – Gain Recognized by Distributee Partner
    • Situation 2 – Loss Recognized by Distributee Partner upon Distribution of Partnership Property
    • Situation 3 – Increase or Decrease in Basis of Assets Distributed in Complete Liquidation of a Partner’s Interest
    • Situation 4 – Decrease in Basis of Partnership Assets Distributed in Partial Liquidation of a Partner’s Interest
  • Allocating the Adjustment Amount
    • Transfers of Partnership Interests
    • Income in Respect of a Decedent
    • Partnership Goodwill
    • Distributions of Partnership Property
    • Section 751(b) Distributions
    • Making the Section 754 Election
    • Relief When Election Not Made
  • Questions
• Chapter 7 - Sale of an Interest in a Partnership or LLC
  • Learning Objectives
  • General Tax Consequences Associated with Sale
    • Effect of Liabilities
    • Receipt of Property other than Cash
    • Holding Period of Partnership Interest
  • Hot Assets and Section 751(a)
    • Hot Assets under Section 751(a)
    • Rules of Application
    • Statement Must be Attached to Return
  • Collectibles and Unrecaptured Section 1250 Gain
    • Collectibles Gain
    • Unrecaptured Section 1250 Gain
  • Installment Sales
  • Potential for Termination of the Partnership
    • Technical Terminations under §708
    • Consequences
    • What Constitutes a Sale under §708?
  • Consequences to the Purchaser
  • Questions
• Chapter 8 - Ethics Focus: Taxation
  • Ethics Overview
  • Recent Developments
  • Spotlight on Independence in Tax Services
  • Key Ethical Dilemmas and Judgment Calls
  • Addressing Ethical Dilemmas
  • Available Resources
• Chapter 9 - Latest Developments
• Appendix A - Partnership Return of Income Checklist
• Appendix B - Limited Liability Entity (LLC, LLP, et. al.) Addendum to the Partnership Return of Income Checklist
• Appendix C - Partnership/LLC Tax Organizer

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