The program will examine tax issues relating to the formation and operation of partnerships. Participants will gain a familiarity with basic areas of partnership taxation so as to recognize a problem and have at hand some practical knowledge for its solution. This course is presented in four practical segments: (1) the formation of partnerships, (2) the basic day-to-day operations of partnerships, (3) distributions of assets to partners, and (4) the termination of partnership affairs.
Delivery Method: Online Interactive Self Study
Prerequisites: General understanding of federal income taxation.
Advanced Preparation: None
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Field of Study:
Passing Score: 70%
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Chapter 1: Introduction
1. Determine what constitutes a partnership for federal income tax purposes under section 761(a) by:
a. Recognizing factors for partnership existence noting co-tenancy status and identifying a husband-wife partnership along with the correct reporting of income and loss;
b. Identifying the liability of general and limited partners including how such liability might be contained; and
c. Specifying the factors previously used to determine whether a business was a corporation or a partnership and the factors of the current check-the-box regulations.
2. Recognize the impact of partnership agreements on partners' shares of tax items, specify the requirements of section 704(e) for family partnerships, and cite the pros and cons of partnerships to determine when the entity choice is appropriate.
3. Identify the complete or partial exclusion from partnership treatment under section 761.
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CPA: Suitable for all CPAs
IRS: Enrolled Agents Program Number 263UK-T-00099-14-S