This course is specifically for Enrolled Agents that need to report to the IRS.

Course Description:

The mini-course will examine tax issues relating to the formation and operation of partnerships. Participants will gain a familiarity with basic areas of partnership taxation so as to recognize a problem and have at hand some practical knowledge for its solution.

Learning Assignment & Objectives

As a result of studying the assigned materials, you should be able to meet the objectives listed below.

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. Explain the tax treatment of partnerships listing advantages and disadvantages and demonstrating their affect on income attribution.

  2. Calculate and report partnership income by:

      a. Identifying filing requirements and the impact partnership K-1’s on individual or partner taxation; and

      b. Specifying loss deduction limitations and explaining the tax treatment of guaranteed payments, organizational expenses and other fees.      

  3. Analyze the tax treatment of contributions of property to a partnership under Statute 721 and describe the impact on tax basis.

  4. Determine the tax treatment of partnership distributions and sale of partnership interests by:

     a. Explaining the tax treatment of partner liabilities and of sales and exchanges of partnership interests and property; and

     b. Distinguishing between liquidating and nonliquidating payments including determination of a partner’s basis on such an event.

Revision Date: 3/19/2024

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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