May 25, 2021

Webcast Replay

8 Total CPE Credits


Tax Fundamentals of LLCs and Partnerships

Learning Objectives

• Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
• Indicate how investors in partnerships and LLCs report their shares of entity income and loss for tax purposes, and how those shares affect the basis of their investments in the entity.
• Calculate the tax basis of assets transferred to a partnership or limited liability company (LLC) at formation.
• Recognize the tax consequences of a transfer of liabilities to a partnership or LLC in connection with property transfers at formation.
• Determine the basis in the investor’s hands of property received as a distribution from a partnership or limited liability company (LLC).
• Indicate the effects of liabilities assumed by a partner or LLC member in connection with a property distribution.
• Determine whether payments to a partner will be treated as guaranteed payments, distributive shares, or payments to a third party.
• Recognize the tax treatment, both at the partner and the partnership level, of guaranteed payments to a partner.
• Differentiate the limitations that apply to partners’ or limited liability company (LLC) members’ distributive share of losses from those of a partnership or LLC.
• Calculate the basis and amount at risk in a partnership or LLC interest for purposes of the passive loss limitation rules.
• Determine 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.
• Identify the potential economic consequences to a partner or LLC member of a special allocation.
• Recognize what information should be disclosed on a Schedule K-1 received from a partnership or LLC.

Major Topics

  • *

  • Basic tax structure of partnerships and LLCs
  • Tax consequences of partnership or LLC formation
  • Partnership distributions
  • Compensatory payments to partners
  • At-risk and passive activity limits
  • Profit and loss allocations: general rules and restrictions

CPE Credits Available

Total CPE

Things to Know About This Course

Course Level

  • Basic

Professional Area of Focus

  • Tax



Advanced Preparation


Intended Audience

Public accounting staff, seniors, supervisors, and tax professionals in company finance or tax departments



This event has ended.