A beginner's guide or a refresher on the essential elements of partnership and LLC taxation.
Learning Objectives
- Learning Outcomes
- Identify the effects of investor contributions and distributions on their basis in a partnership or LLC interest.
- Identify 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.
- Indicate the correct treatment of partnership income by a partner for self-employment tax purposes.
- Distinguish between current and liquidating distributions.
- Recall 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.
