2024 Partnerships/LLCs: Understanding Tax Basis Capital Accounts

Overview

This program addresses the most recent developments impacting partnerships operating as LLCs, with a focus on legislative, administrative, and tax form changes.  Emphasis will be placed on partners “tax basis” capital accounts – now required for tax form reporting. 

**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com.

Highlights

• Discussion of the impact of the Section 199A flow-through entities deduction on partnerships and their partners
• The meaning of a “tax basis capital account” -- how do the financial accounting and tax capital accounts differ from one another
• How to determine a partner’s share of the partnership’s liabilities
• Distinguishing “recourse” loans from “nonrecourse” loans
• What are “qualified nonrecourse financing” loans and how they affect partners
• Review of the Sec. 704 “built-in gain or loss” rules and how they impact Schedule K-1 reporting

Prerequisites

Basic working knowledge of business and partnership taxation

Designed For

CPAs in public practice and industry seeking an update on the latest tax developments affecting partnerships

Objectives

• Identify recent changes impacting the partnership entity and its partners

Preparation

None