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Advanced Tax Strategies for LLCs and Partnerships

Author/Moderator: Robert Ricketts, Ph.D., CPA & Larry Tunnell, Ph.D., CPA
Publisher: AICPA
Availability: In Stock
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Description

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What works best for your client? Learn the pros and cons of the LLC, General Partnership, Limited Partnership, and Limited Liability Partnership by focusing on planning and potential tax traps. This CPE course offers a review of distinct advantages of these entities, coupled with an examination of the risk members and partners face if they do not have a solid tax plan to minimize their exposure. In addition, we will explore some of the more intricate rules and regulations of these entities so you can move your working knowledge of partnership and LLC taxation beyond the basics.

Key Topics:

  1. Allocation of Partnership and LLC Income Under Section 704(b)
  2. Allocations With Respect to Contributed Property: Section 704(c)(1)(A)
  3. Allocation of Partnership Recourse Liabilities Under Section 752
  4. Allocation of Partnership Nonrecourse Liabilities and Related Deductions Under Sections 752 and 704(b)
  5. Advanced Distribution Rules
  6. Adjustments to the Basis of Partnership or LLC Assets
  7. Sale of an Interest in a Partnership or LLC
Learning Objectives:

This course will prepare you to:

  1. Analyze a partnership or LLC agreement to determine whether any special allocations in the agreement will be allowed under Code Section 704(b)
  2. Identify the potential economic consequences of special allocations to a partner or LLC member
  3. Identify the potential tax consequences when a partner or LLC member has a negative balance in his or her capital account
  4. Recognize the relationship between partnership and LLC allocations of profit and loss and the allocation of the risks and rewards of entity operations
  5. Distinguish between the requirements for substantiality and those for economic effect under the regulations
  6. Distinguish between “book” allocations required under Section 704(b) and “tax” allocations required under Section 704(c)
  7. Recognize the three methods described in the Section 704(c) regulations to make special allocations with respect to contributed property
  8. Determine when a non-contributing partner or LLC member will or will not be protected by required allocations under Section 704(c)
  9. Calculate the gain that can result from reallocation of liabilities when a partner joins a partnership
  10. Calculate a partner’s or member’s share of recourse liabilities of a partnership or LLC
  11. Distinguish between recourse and nonrecourse liabilities of a partnership or LLC
  12. Analyze the impact of a partner or LLC member’s guarantee of a recourse or nonrecourse liability of the entity
  13. Recognize when to treat a liability as a recognized versus contingent liability and understand how to account for partnership or LLC contingent liabilities
  14. Calculate the basis of each property received by a partner receiving multiple properties in a liquidating vs. non-liquidating distribution from a partnership or LLC
  15. Recognize which properties will receive a step-up or step-down in basis when multiple properties are received from a partnership or LLC
  16. Allocate basis increases or decreases among multiple properties for federal income tax purposes
  17. Determine when an Internal Revenue code (IRC) Section 754 election will allow a partnership or LLC to adjust its basis in its assets
  18. Allocate required basis adjustments among partnership or LLC assets
  19. Determine the tax consequences associated with the sale of a partner’s or member’s interest in a partnership or LLC
  20. Recognize how using the installment method to account for the sale of a partnership interest will affect how the partner will report his or her gain on the sale
  21. Recognize when the sale of an interest in a partnership will trigger a technical termination of the partnership
  22. Determine the tax basis and holding period of assets owned by the partnership following a technical termination
  23. Determine the tax consequences associated with subsequent dispositions of built-in gain or loss assets following a technical termination

Who Will Benefit?
Managers and partners in public accounting who assist clients with tax planning for closely held LLCs and partnerships

Prerequisite: Basic Knowledge of Business Taxation

Advance Preparation: None

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Videocourse Details

NASBA Field of Study: Taxes
Level: Advanced
Recommended CPE Credit: 10.5
Advanced Tax Strategies for LLCs and Partnerships
Text , 2016
Product# 745226
Availability: In Stock
Regular:$219.00
AICPA Member:$169.00
Your Price:$219.00
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