Courses

Surgent's Guide to Partner Capital Account Reporting

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Member Price: $99.00 Non-Member Price: $129.00

Date/Time:: Dec 31, 2024, 10:00am–12:00pm
Developer:: SURGENT MCCOY SELF-STUDY CPE, LLC
CPE Credits:: Taxes: 2.00
Fields of Study:: Taxes
Level:: Basic

Tax practitioners are responsible for presenting partner capital accounts on the tax basis. But what does this mean and how have rules changed in recent years regarding partner capital accounts? This course covers exactly that. For tax practitioners preparing partnership 1065 forms, this course explains these complex rules in practical and understandable terms.

Objective

Understand how a partner determines and reports his or her tax basis capital account

Highlights

How a partner’s outside basis and capital account differ
Reconciling Schedule M-2 Form 1065 with Partnership K-1 Schedule L
IRS requirement to report partner tax basis on the transactional approach
Implications if a capital account is negative
Deficit restoration accounts and qualified income offsets
Modified outside basis method and modified previously taxed capital method
Determining a partner’s beginning capital account
Beginning capital account for partnerships and partners consistently reporting on the tax basis
The two types of adjustments under 754 and how 743 and 734 require different capital account presentations

Designed For

Any tax practitioner who will be preparing partnership income tax returns

Prerequisite

Basic understanding of tax rules relating to partnerships and partners

Advanced Preparation

None