Once participants have completed this session, they should be able to:
- Form a partnership and calculate the partnership's initial inside basis in the assets and partner's outside basis in the entity.
- Prepare a basic partnership (Form 1065) Schedule K including the reporting of cash and non-cash distributions.
- Understand how the schedule K items get allocated to the partners/members on their individual Schedule K-1.
- List the three main reasons for calculating a partner/member's basis in a partnership/LLC.
- Calculate a partner/member's outside basis and determine if losses and deductions are limited on their individual income tax return.
The Tax U More With This Vendor
Tax professionals that need an in-depth training course on tax preparation issues, basis calculations and distributions rules for partnerships, LLCs and their owners.
Garverick, J Patrick
Pat Garverick is a Certified Public Accountant (CPA) who began his career in public accounting in 1988 after obtaining his Bachelor of Science in Business Administration (BSBA) in Accounting from The Ohio State University. After receiving his Master of Taxation (MT) degree from Arizona State University in 1992, Garverick began operating his own tax and financial planning business. He also started writing, reviewing, and teaching tax and financial planning continuing professional education courses around the country. In addition to being a CPA, Garverick is also a Certified Financial Planner (CFPÂ®). Garverick has presented continuing education sessions throughout the country and has won awards for both his skills as an instructor as well as for the content he has created. During his time in college Garverick earned a letter as a member of the Ohio State Basketball squad. He remains a staunch supporter of the sports programs at his alma mater, OSU.
Each attendee will receive the most comprehensive reference manual with numerous practice aids and real world examples and case studies. Topics include but are not limited to:
- Extensive review of the partnership tax laws with an emphasis on any new legislative changes.
- Review the Form 1065 to learn how income statement items get reported on the partnership/LLC tax return (i.e., page 1 versus Schedule K) and flow-thru to the partner/members on Schedule K-1.
- Analyze the Schedule K-1 line-by-line and discuss where the items get reported on the individual's Federal income tax return and how the items affect the partner/member's outside basis.
- Look at detailed Schedule K-1 information reporting to partners/members needed for the qualified business income (QBI) deduction, 3.8% net investment income tax and business interest expense limitations.
- Formation issues including the mandatory allocation of the 704(c) pre-contribution gain or losses back to the contributing partner/member.
- Calculating the tax and 704(b) book capital accounts.
- Reporting recourse and non-recourse debt on the Schedule K-1.
- Tax ramifications and reporting of cash and non-cash distributions including disproportionate distributions of "hot assets".
- Overview of the 754 election for optional basis adjustments triggering 743 (transfer of interests) and 734 (distributions).