Overview
The tax rules for partnerships are complex regarding the allocation of gain, loss, depreciation, recourse and non-recourse liabilities, contributed property and other tax attributes. The need for tax professionals with specialized training to understand the opportunities and pitfalls that these rules present has never been greater.
In this in-depth program, you will work through numerous examples, learn how to fill out critical forms and use real-world case studies to discover how you can apply key concepts to your clients’ benefit. You’ll acquire the knowledge and confidence you need to effectively handle and provide advice on partnership issues.
AGENDA HIGHLIGHTS
• Introduction to partnerships
• Operational issues
• Formation of the partnership
• Basis in the partnership interest
• Disguised sales rules
• Section 751 (“Hot Assets”)
• Taxable income: a look at the K-1
• Partner’s distributive share of partnership items
• Distributions from partnerships
• Sale of partnership interests, terminations and liquidations
• Section 754 optional basis adjustments
• Passive loss rules
• Tax planning discussions
• Investment partnerships
• IRS case study
• Real property trades or businesses
Agenda
DAY ONE
INTRODUCTION TO PARTNERSHIPS
• Partnership entity
• Key aspects of partnership law and tax implications
• Review types of partnerships and Limited Liability Companies/Partnerships
• Electing out of Subchapter K
• Check-the-box regulations
OPERATIONAL ISSUES
• Tax year and accounting methods
• Items required to be stated separately
• Partnership and partner elections
• Other operational issues
FORMATION OF THE PARTNERSHIP
• Introduction
• Contributions of property and cash, no gain or loss
• Contribution of property if fair market value and basis differ under Section 704(c) rules
• Contribution of services in exchange for a partnership interest
BASIS IN THE PARTNERSHIP INTEREST
• Introduction
• Inside and outside basis, basis vs. capital accounts
• Determination of the partner’s basis in the partnership interest
• Definition of liability for partnership purposes and allocation among partners
• Review examples/case study
• IRS court case discussion
DAY TWO
DISGUISED SALES RULES
• Introduction—potential inequity of the tax rules
• Disguised sales rules and exceptions described
• Liabilities and disguised sales rules, tax return disclosure
• Property distributions that follow contributions of appreciated property
IDENTIFICATION & TREATMENT OF SECTION 751 HOT ASSETS
• Application of the rules, definition of hot assets
• Tax treatment in section 751 transaction and reporting requirements
PARTNERSHIP TAXABLE INCOME: A LOOK AT THE K-1
• Partnership as a pass-through entity
• At-risk rules under IRC 465
• Partnership and LLC issues and K-1s
• Review Form 1065, Schedule K and Schedule K-1 and instructions
PARTNER’S DISTRIBUTIVE SHARE OF PARTNERSHIP ITEMS
• Allocations under partnership agreement must have substantial economic effect, section 704(b)
• Review of problem areas
• Anti-Abuse Regulations 1.701-2(b)
• Elections by partnerships
• Case study
• IRS Tax Court Case discussion
DAY THREE
DISTRIBUTIONS FROM PARTNERSHIPS
• Overview of distributions
• Taxation of current distributions, cash, securities, and/or property
• Taxation of liquidating distributions
SALE OF PARTNERSHIP INTERESTS, TERMINATIONS & LIQUIDATIONS
• Purchase, sale or redemption of partnership interests
• Retiring partner’s or successor’s share
• Termination of partnership
• Distributions in liquidation of a partnership interest
SECTION 754 OPTIONAL BASIS ADJUSTMENTS (STEP UP) UPON SALE OR TRANSFER
• Theory for Optional Basis Adjustment
• Section 754 Election
• Mandatory basis adjustments under Section 743 and Section 734
PASSIVE LOSS RULES
• Background
• Definition of Activity and Material Participation
TAX PLANNING DISCUSSIONS
DAY FOUR
REVIEW THROUGH PROBLEM SOLVING
• Prepare simple Form 1065, K-1
• Complete Partner Basis Worksheet
INVESTMENT PARTNERSHIPS
• Discussion and problem solving
IRS CASE STUDY
REAL PROPERTY TRADES OR BUSINESSES
• Formation and basis of a real estate partnership
• Operating income and expenses
• Deductibility of losses, passive losses
• Distributions from partnerships, taxability
• Like-kind exchanges, installment sales, lease transactions
CASE STUDY/IRS TAX CASE REVIEW
CLIENT ENGAGEMENT LETTER DISCUSSION/SCOPE
WRAP-UP
Location
Speakers
PROGRAM SPEAKERS
Phillip I. Coleman, CPA, was the Founder and former Managing Partner (retired, 1998) of Coleman, Epstein, Berlin & Company LLP, an accounting firm that specialized in audit and tax practice. Previously, he was Staff and Senior Accountant, as well as Audit Manager, at Price Waterhouse & Company where he was responsible for auditing large publicly held corporations. Mr. Coleman was Chairman of the Audit Committee and a member of the Board of Directors of Anchor Bank/Lakes Region Bancorp, Inc. He was elected as Chairman of the Board and served in this position until the bank was sold. He is a member of the American Institute of Certified Public Accountants and the Illinois CPA Society.
W. Stewart Connard, CPA, retired from the Internal Revenue Service in 2009 after 36 years of service. From 1999 to 2009, he was a Partnership Technical Adviser in the Pre-Filing & Technical Guidance section of the Large and Mid-Size Business (LMSB) Unit. As a Partnership Technical Adviser, he assisted revenue agents in examining large public and private corporations on complex partnership issues and tax shelter transactions. From 1973 to 1999, he was an Internal Revenue Agent in the former IRS Baltimore District. Throughout his career, he has taught numerous tax courses for the Internal Revenue Service, state tax agencies and the DC Institute of CPAs. He is a graduate of Shippensburg University in Shippensburg, PA.
Joseph F. Messina, MBA, JD, LLM Taxation, is a Divisional Deputy City Solicitor in the City of Philadelphia Law Department. He is a former member of the Faculty of Business Studies at Rutgers University and also was a lecturer in law at Rutgers University School of Law. He has practiced in various areas of tax and business law including corporate, partnership and individual income taxation; estate and trust administration and taxation; bankruptcy tax law, estate planning and real estate. Mr. Messina has spoken at many accounting and legal seminars and has been a co-course planner and lecturer for the Pennsylvania Bar Institute.
Workshop
No results found.
Forum
No results found.
