Tax Fundamentals of LLCs and Partnerships - Tax Staff Essentials

Overview

A beginner’s guide or a refresher on the essential elements of partnership and LLC taxation.

Highlights

Basic tax structure of partnerships and LLCs

Check-the-box elections to be taxed as a partnership

Partnership distributions

Compensatory payments to partners

At-risk and passive activity limits

Profit and loss allocations: general rules and restrictions

Prerequisites

None

Designed For

Public accounting staff and seniors

Tax professionals in company finance or tax departments

Objectives

Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
Identify the tax basis of assets transferred to a partnership or limited liability company (LLC) at formation.
Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation.
Indicate the correct treatment of partnership income by a partner for self-employment tax purposes.
Distinguish between current and liquidating distributions.
Recall whether special allocations called for in a partnership agreement will be allowable under the Section 704(b) regulations and when they will not be recognized by the IRS.

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

Robert Ricketts, Director, School of Accounting, Texas Tech University

Leader Bios

Robert Ricketts, Director, School of Accounting, Texas Tech University

Robert Ricketts, CPA, PhD, is the director of the School of Accounting and the Frank M. Burke Chair in Taxation at Texas Tech, where he has taught in the graduate tax program for the last 25 years. He is the co-author, with Larry Tunnell, of CCH’s Practical Guide to Partnerships and LLCs, now in its sixth edition, as well as a series of courses on the taxation of partnerships and LLCs for the AICPA.

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