Advanced Tax Strategies for LLCs & Partnerships  (DTT)

8.00 CPE Credit Hours

What works best for your client? Learn the pros and cons of the LLC, General Partnership, Limited Partnership, and Limited Liability Partnership by focusing on planning and potential tax traps. A review of distinct advantages of these entities is coupled with an examination of the risk members and partners face if they do not have a solid tax plan to minimize their exposure. In addition, we will explore some of the more intricate rules and regulations of these entities so you can move your working knowledge of partnership and LLC taxation beyond the basics.

Designed For
Managers and partners in public accounting who assist clients with tax planning for closely held LLCs and partnerships

Objective

• Allocate income, gain, loss, and deduction among partner/members to reflect their agreed-upon interests properly in partnership or LLC economic activities.
• Assess the risks taken by investors with respect to their investment in a partnership or LLC and allocate the entity's liabilities accordingly.
• Determine the consequences of selling a partnership or LLC interest.
• Calculate the basis of partnership or LLC following distributions of multiple properties.
• Plan for the effects of a distribution of multiple properties.
• Make elections to protect partners and LLC members from unwelcome future consequences arising from current distributions, sales, and/or transfers of interests in the partnership.

Highlights

• Allocation of partnership and LLC income under Section 704(b)
• Allocations with respect to contributed property
• Allocation of partnership recourse liabilities under Section 752
• Allocation of partnership nonrecourse liabilities and related deductions under Sections 752 and 704(b)
• Advanced distribution rules
• Adjustments to the basis of partnership/LLC assets
• Sale of an interest in a partnership or LLC

Prerequisites
Basic knowledge of business taxation

Advanced Preparation
None

Developer
AICPA

Presenters
Steven Wagner,

Level of Knowledge
Advanced