CPE Course Allocating Partnership/LLC Income, Losses and Debt to Partners
October 31, 2017
11:30AM — 3:00 PM
Field of Interest
Attorneys who draft partnership agreements; CPAs who prepare forms 1065, 568, 565 and K-1 for partnerships and LLCs; and CPAs who prepare partner income tax returns or forms 1040 or 1120, or who advise partners on tax-smart strategies.
4.00 creditsView Cart
- Recognize the difference between book and tax basis capital accounts.
- Recognize the Treasury Capital Account Method of allocating income, gains, losses, and deductions under section 704(b).
- Determine when the partnership agreement enables a partner to meet the safe harbor for economic effect.
- Identify the strengths and weaknesses of the Target Capital Account Method.
- Determine when an LLC member or Limited Partner can have a negative capital account.
- Recognize terminology in partnership agreements such as “partnership minimum gain," “partner minimum gain," “partnership nonrecourse deductions” and “partner nonrecourse deductions."
- Recognize and understand the importance of a “minimum gain chargeback” and a “qualified income offset” in a partnership agreement.
- Determine when capital accounts can be optionally revalued and why it matters.
- Identify the “ceiling rule” and the three regulatory methods of making section 704(c) allocations.
- Distinguish recourse debt from nonrecourse debt, and qualified nonrecourse financing.
- Recognize the definition of a “bottom-dollar payment obligation” and why it matters.
- Determine how to properly report each partner’s debt share on IRS Schedule K-1.
- Recognize the competing strategies that arise when partners contribute cash, appreciated property or services to a partnership.
- Allocating income, gain, deductions and losses under section 704(b).
- Distinguishing the Treasury Capital Account Method from the Target Capital Account Method.
- Allocations of built-in gain or loss pursuant to section 704(c).
- Properly characterizing debt as recourse, nonrecourse, or qualified nonrecourse financing.
- Allocating debt to the partners pursuant to section 752.
General knowledge in partnership taxation.
California Society of CPAs