Partnership Investments - How to Calculate the Owner's Basis

Description

A detailed analysis of the calculations related to determining a partner's tax basis for a partnership interest using the Form 1065, Schedule K-1 information. An illustrated example with filled in forms will demonstrate how the process works and its many potential pitfalls.

This course qualifies for PTIN credit.

This event may be a rebroadcast of a live event and the instructor will be available to answer your questions either during or after the event.

Highlights

• Discusses the calculation of basis when the entity is formed, including the impact of contributed property.
• Explains the use of both "inside" and "outside" basis determination.
• Clarifies the importance of partnership capital accounts and partnerships debt on partner's tax basis.
• Uses a comprehensive example to illustrate the mechanics of the basis determination process.
• Discusses how basis is impacted by distributions of partnership property.
• Explains how basis is impacted by sale and/or liquidation of the partnership interest.

Objectives

To provide a thorough review and update of the tax issues related to LLC/partnership basis from formation through operations and concluding with sale and/or liquidation.

Designed For

CPAs working in public accounting firms and/or working for partnerships.