Tax Fundamentals of LLCs and Partnerships - Tax Staff Essentials

Overview

Building a solid foundation of partnership and LLC taxation

A foundational understanding of partnership taxation is essential to a tax preparer’s career. Given that most U.S. businesses are formed as pass-through entities, you’ll likely encounter partnership tax matters that require your attention.

This course covers the taxation of partnerships, including limited liability companies (LLCs) treated as partnerships for U.S. federal income tax purposes.

Matters discussed include:

Common transactions

Check-the-box election rules

Consequential court cases involving partnership formation

Skills to explain partnership taxation matters to your clients

Talking about tax can sometimes sound like speaking a foreign language to your clients. Learn how to explain complex issues with accuracy and confidence.

Part of Tax Staff Essentials Level 1
This self-study online course is part of Tax Staff Essentials Level 1, a comprehensive learning program that provides tax staff with the technical training required to support their teams.

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 LLC at formation.
Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation.
Distinguish between current and liquidating distributions.
Determine the correct treatment of partnership income by a partner for self-employment tax purposes.
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.

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

Designed For

Public accounting staff and seniors

Tax professionals in company finance or tax departments

Prerequisites

None

Notice

You will receive an email from the AICPA with instructions to access the webinar.

Fees

Credits

Level

Code

Vendor

Fields of Study

Leader Bios

Larry Tunnell, AICPA

Larry Tunnell, Ph.D, CPA New Mexico State University (ret.), Las Cruces, NM

Dr. Larry Tunnell is Professor Emeritus in Accounting at the College of Business at New Mexico State University. He has over 25 years of experience teaching, publishing, and practicing in the area of taxation.

He is coauthor of a book on partnership taxation and a widely-used textbook on general federal taxation. In addition, he is author or coauthor on over 20 articles in the area of taxation.

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Robert Ricketts, AICPA

Robert Ricketts Ph.D., CPA Robert Ricketts is the Director of the School of Accounting in the Rawls College of Business at Texas Tech University. He has been a member of the Accounting faculty since 1988 and has held the Frank M. Burke Chair in Taxation since 1999. Prior to earning his Ph.D. from the University of North Texas in 1988, he worked for the Dallas office of Ernst & Whinney (now Ernst & Young) as a tax senior. Ricketts’ tax scholarship addresses a broad audience. He co-authors several courses on partnership taxation for the AICPA and has written a forthcoming book on comparative taxation with an international group of authors. He also contributes chapters to a leading undergraduate textbook on taxation and has numerous academic publications on issues ranging from the risks of over-reliance on tax software to the response of multinational corporations to tax holiday legislation. Ricketts teaches at both the undergraduate and graduate levels, working extensively with doctoral students. His love for students, and for Texas Tech, is well-known by students, colleagues and alumni across the world.

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