As they gain more experience, staff are expected to take on more complex assignments with minimal supervision. This program utilizes a case study approach to apply federal tax rules to clients’ limited liability companies. The course is designed to be a step above a mere preparation seminar, including case review and discussion regarding formation, LLC taxation election issues, precontribution appreciation in assets, basis implications of recourse and nonrecourse debt, special allocations of income and deductions, basis step-up under §754 on transfer of an ownership interest, self-employment tax issues, and termination/liquidation of the LLC.

Major Topics:

  • Complete coverage of the tax acts of 2014 and any new legislation enacted before presentation
  • Treatment of recourse versus nonrecourse debt basis
  • How to calculate basis limitations and its implication on each partner’s own tax return
  • Regulations for handling basis step-ups under §754 elections, and Mandatory adjustments under §743 and §734 for partnerships who have NOT made the §754 election
  • Differences between “Capital” and “Basis”
  • Capital account adjustments in connection with admission of new member
  • Electronic furnishing of Schedule K1
  • Inconsistent treatment of Schedule K1 items
  • Detailed rules of §704 for preventing the shifting of tax consequences among partners or members
  • Understanding “substantial economic effect” and special allocations
  • LLCs and self-employment tax to the members
  • Distributions – current or liquidating, cash or property
  • Termination/liquidation of an LLC

Learning Objectives:

  • Prepare more complicated partnership returns
  • Understand certain advanced concepts of partnership taxation

Designed For: Experienced CPAs desiring a comprehensive case approach to understand reasonably complex limited liability company issues and problems; also, CPAs who want a comprehensive, intermediate-level limited liability company practice manual
Level of Knowledge: Intermediate
Prerequisite: Experience in business taxation
Advanced Preparation: None
Credits: 8