Partnership Taxation

  • Credits: 13
  • Format: Self-Study eBook
  • Field of Study: Federal Tax Update
  • Author/Speaker: Danny Santucci
Available Formats:   
Advanced Preparation: None
Experience Level: Overview
Program Prerequisites: General Understanding Taxes
Course ID: EWTFM-U-01836-21-S | 6233-CE-0551
Published Date: © August 2021
COURSE DESCRIPTION

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

Provisions for the taxation of partnerships are in Section 701 through Section 761. Under these sections, the partnership files an information return (Form 1065). Its income and deductions flow through to and are reflected on, the tax returns of the partners (Form 1040). The Code prescribes the consequences of many different sorts of transactions involving partnerships and partners but, allows substantial flexibility so that the parties can often achieve the tax results they desire.

Topics include:
  • The formation of partnerships;
  • The basic day-to-day operations of partnerships;
  • Distributions of assets to partners, and;
  • The termination of partnership affairs.

Learning Objectives:

After reading the course material, you will be able to:

  • Determine what constitutes a partnership for federal income tax purposes under Section 761(a) by: Recognizing factors for partnership existence identifying co-tenancy status, husband-wife partnerships, and the correct reporting of income and loss; Identifying the liability of general and limited partners including how such liability might be contained, and Specifying the factors previously used to determine whether a business was a corporation or a partnership and the factors of the current check-the-box regulations.
  • Recognize the impact of partnership agreements on partners’ shares of tax items, specify the requirements of Section 704(e) for family partnerships, and cite the pros and cons of partnerships to determine when the entity choice is appropriate.
  • Identify the complete or partial exclusion from partnership treatment under Section 761.
  • Recognize the allocation of income and deduction among partners, identify when a partnership or its partners are subject to income or estimated tax, determine what constitutes Section 1402 self-employment taxes, and specify instances where partnerships are viewed as separate entities.
  • Specify the types of separately stated partnership expenses identifying the character of such items and their deduction limitations, and recognize Section 704(d) outside basis limitation and its impact on losses.
  • Determine whether a partnership can elect to amortize certain business-related expenses, and specify the elements and requirements of the partnership tax return and the items of deduction to which individuals are entitled.
  • Identify a partnership’s year taxable under Section 706(a) and the allocation of items of income and deduction from the partnership to the partners by: Specifying instances when a partnership generally must conform its tax year to its partners’ tax years and the least aggregate deferral of income for each partner whose tax year is different from other partners; Recognizing the availability of the natural business year including the Section 444 election as it relates to a partnership’s tax year identifying its costs and/or benefits; and Determining tax year termination and non-termination events for a partnership.

Who Should Attend:
  • All Certified Public Accountants (CPAs)
  • Enrolled Agents (EAs)
  • Other Tax Return Preparer (OTRP)

Qualifies and Approved with all State Boards of Accountancy and the following sponsorship’s:
NASBA
IRS
CTEC