2024 Partnership Essentials: Tax Basis Capital Accounts

Overview

This course examines the critical issues and special opportunities facing partnerships and their partners, with a focus on reporting tax basis capital accounts. 

**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com.

Prerequisites

Basic working knowledge of partnerships and LLCs taxation

Objectives

• Define the tax consequences and various liabilities for both partnerships and LLCs
• Apply rules for reporting tax basis capital accounts
• Identify planning opportunities and potential pitfalls

Highlights

• Importance of capital accounts
• Reporting negative tax basis
• Tax accounting for property contributed to a partnership
• Pre-contribution appreciation
• Effect of the Ceiling Rule
• Allocation of depreciation to partners
• Alternative and Remedial Methods
• Effect on financial capital accounts
• Form 1065, Schedule K-1
• Tax basis capital accounts