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Partnership Preparation, Basis Calculations and Distributions: Form 1065 Schedule K & K1 Analysis (4171613C)

 
Date:Thursday, January 25, 2018
Time:11:30AM - 7:00 PM
(Registration at 11:00AM)
Facility:Webcast or Webinar, Online
CPE Credit:8.0 Technical Business
Instructor: J P. Garverick
Vendor:California CPA Education Foundation
Course Level:Intermediate
Early Bird Price:$245.00 FICPA Members, $365.00 Non-Members

Description:

Get up to speed quickly on partnership and LLC formation, as well as preparation issues and calculating a partner’s and LLC member’s basis. Take a line-by-line analysis of Form 1065 Schedule K and K-1 and how these items affect the partner’s or member’s individual income tax return. Each attendee will receive a comprehensive reference manual that includes practice aids and real-world examples and case studies.



Objectives:
  • Be able to form a partnership and calculate its initial inside basis in the assets and partner’s outside basis in the entity.
  • Prepare a basic partnership (Form 1065) Schedule K including reporting of cash and non-cash distributions.
  • Determine how Schedule K items get allocated to partners/members on their individual Schedule K-1.
  • Identify the three main reasons for calculating a partner's or member’s basis in a partnership/LLC.
  • Calculate a partner's or member’s outside basis and determine if losses and deductions are limited on their individual income tax return.


Major Topics:
  • Emphasize any new legislative changes affecting partnershiops and partners
  • Review the Form 1065 to learn how income statement items get reported on the partnership/LLC tax return (i.e., page 1 versus Schedule K) and flow-thru to the partner/members on Schedule K-1
  • Analyze the Schedule K-1 line-by-line and discuss where the items get reported on the individual’s Federal income tax return and how the items affect the partner/member’s outside basis
  • Look at what relevant information related to the 3.8% net investment income tax needs to be reported to the partners/members
  • Formation issues including the mandatory allocation of the §704(c) pre-contribution gain or losses back to the contributing partner/member
  • The purpose of tax and §704(b) book capital account
  • Reporting recourse and non-recourse debt on the Schedule K-1
  • Tax ramifications and reporting of cash and non-cash distributions including disproportionate distributions of “hot assets”
  • Overview of the §754 election for optional basis adjustments triggering §743 (transfer of interests) and §734 (distributions)  


Who Should Attend:

Tax professionals who need an in-depth training course on tax preparation issues, basis calculations and distributions rules for partnerships, LLCs and their owners.



Prerequisite:
General knowledge of individual and partnership income taxation.

Advanced Preparation:
None.

Session/Options

If listed below, select the appropriate sessions or options to continue with your purchase.

Registration Status: CLOSED - Online registration for this course is now closed. Please contact the Member Service Center at (800) 342-3197 if you wish to inquire about registering.