The Top Five Tax Issues in Dealing with LLCs & Partnerships
Overview
Partnerships and LLCs involve unique problems that require careful attention. This course covers selected critical tax issues that practitioners need to know when working with partnerships and limited liability companies, with a focus on planning opportunities and pitfalls.
Learning Objectives:
- Identify and distinguish guaranteed payments and distributive shares.
- Understand the relationship between capital account maintenance and outside basis adjustment.
- Define various kinds of partnership liabilities and explain the tax consequences of each.
Major Topics:
- Coverage of important provisions of the SECURE 2.0 Act and Inflation Reduction Act
- Self-employment tax issues: what you can and cannot do
- Capital accounts: book vs. tax issues
- Determining basis: key issues and technical analysis in calculating basis
- Dealing with debt: recourse, nonrecourse and why it matters
- Guaranteed payments, distributive shares, and draws: understanding the difference
