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.
- Recognize the tax treatment of partnerships specifying advantages and disadvantages and their effect on income attribution.
- Determine partnership income and reporting requirements by: a. Identifying filing requirements and the impact partnership K-1’s on individual or partner taxation; and b. Specifying loss deduction limitations and stating the tax treatment of guaranteed payments, organizational expenses, and other fees.
- Identify the tax treatment of contributions of property to a partnership under §721 and the impact on tax basis.
- Recognize the tax treatment of partnership distributions and sale of partnership interests by: a. Identifying the tax treatment of partner liabilities and of sales and exchanges of partnership interests and property; and b. Determining the differences between liquidating and nonliquidating payments including the definition of a partner’s basis on such an event.
- General understanding of federal income taxation