Course

Advanced Partnership Issues: Featuring the New Partnership Audit Regime & Tax Cuts & Jobs Act Changes - Virtual Only

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Event Details

Wednesday, August 26, 2020

8:00am – 4:00pm
(Registration: 7:30am)

Location

Facility Pending

Billings

Field of Study

  • Taxes

CPE Credit

8 hours CPE credit

Course Code

APIA-30

Instructor

Level of Knowledge

Advanced

Vendor

Kaplan Financial Education Powered by Loscalzo

Prerequisites

Experience advising clients on tax matters.

Description

After much thought, MSCPA has decided to take all our CPE Classes till the end of December 2020 to virtual, this includes all conference. The risk of COVID-19 is just too high and we would not want any of you to get sick at one of our classes. All materials will be electronic.

As we bid farewell to the TEFRA consolidated audit rules, we face the brave new world of the completely revised partnership audit regime. This takes effect with partnership years beginning in 2018. Partnerships and their advisers need to understand how these new rules radically change the nature of partnership examinations and the likely future impact on the structure of partnerships. All of this adds to the inherent complexity of partnerships, including partnership allocations (including targeted capital account-based allocations), the required allocations for contributed property under 704(c) and more. This course will cover areas to help advanced practitioners deal with the practical problems faced by their partnership clients.

Highlights

  • The new partnership audit rules that were part of the Bipartisan Budget Act of 2015
  • IRS guidance on the new audit rules, including proposed regulations, as well as any Congressional revisions that take place in the current year
  • Liabilities and their allocation to owners’ basis—Sec. 752
  • Determination of owners’ distributive share including special allocations—Sec. 704(b)
  • Adjustments for contributed property—Sec. 704(c)
  • Optional adjustments to the basis of entity property—Section 754 election
  • Distribution of “HOT” assets—Sec. 751
  • Payments to a retiring partner or member—Sec. 736
  • Carried interest three year holding period—Sec. 1061
  • Current developments—court cases and IRS rulings

Objectives

Participants will be able to:

  • Recognize issues that will arise under the newly revised consolidated partnership audit regime, as well as partnerships that will be eligible of opt-out of the regime
  • Calculate the special allocations required for Section 704(c) property
  • Understand partnership capital accounts and be able to explain to clients why they are important
  • Deal with the implications on allocations for agreements written with targeted capital accounts
  • Handle Section 754 elections and related adjustments
  • Apply rules properly when passing income and other items through to owners
  • Deal with the IRS’s recent aggressive approach to dealing with self-employment income from LLCs and similar entities
  • Apply the special three year holding period rules for partners with carried interests

Designed For

CPAs, accountants and financial professionals who advise their clients regarding planning for partnership and/or limited liability company transactions and/or who have review responsibility for partnership or limited liability company tax compliance.

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