PS: Operational Issues, Form 1065, and Schedule K-1

General Description:

The Partnership Series is taught on a basic level for new tax professionals. The participant will learn the various rules that a return preparer must consider in preparing Form 1065, U.S. Return of Partnership Income.

Learning Objective:

After completing this course the participant will be able to:

• Describe the partnership audit provisions and penalty for late filing a Form 1065.
• Determine the required taxable year end for an LLC/partnership.
• Determine the method of accounting for an LLC/partnership and whether an LLC is a tax shelter.
• Discuss the application of the business interest expense limits of §163(j), Line 13(k) of the K-1, and Form 8990.
• Discuss the PTE election, including calculating PTE taxable income, determining how much of the state tax paid is deductible as a business expense, and the effect of the PTE tax on the individual partner.
• File Form 1065 and consider reporting requirements for tax basis capital account.
• Apply the passive loss rules and self-charged interest rules to a partnership.
• Determine whether the income from a partnership/LLC is subject to self-employment tax.
• Apply the varying interest rules under §706(d).
• Explain the fringe benefits which are available to a partnership and the treatment of health insurance premiums under ACA.
• Reconstruct a partner's basis.
• Determine the maximum amount of loss that is deductible by a partner and the character of the loss.
• Apply the at-risk rules and passive loss rules to an LLC.
• Determine how much of the self-charged interest is subject to the 3.8% tax on net investment income.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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