Reviewing Partnership Tax Returns: What Are You Missing?

Description

The partnership section of the Internal Revenue Code is arguably one of the most complicated. That complexity, and the reliability of tax software to properly handle it, can create many issues for you and your staff when processing your client's LLC and partnership tax returns.
In this case study-based course, we discuss the common errors practitioners make on partnership tax returns that review staff often miss. The intent is to sharpen the skills of reviewers by examining four case studies and discussing issues where additional information from the client may be warranted and areas of tax law where proper treatment requires further analysis and information. Matters discussed include income, deductions, K-1 reporting, and K-2 and K-3 reporting.

Highlights

  • Form 1065
  • Schedules Kand K-1
  • Schedules M-1 and M-2
  • Calculating recourse and nonrecourse liabilities
  • Partner inside and outside basis
  • Partner's capital account analysis
  • Sections 704(b), 704(c), 721, 722, 732(b), 734(b), 737, 743(b)

Objectives

  • Identify the mechanics of a partnership's tax return, including partner capital account calculations and permissible tax years.
  • Determine the proper allocation of recourse liabilities among partners.
  • Analyze the consequences of a new partner joining a partnership.
  • Determine depreciation expense among the contributing and noncontributing partners under Section 704(c).
  • Determine the value of assets with nonrecourse liabilities.

Designed For

Partners and managers in CPA firms - Experienced CPA staff

Leaders

Richard Lahijani

Richard Lahijani, CPA, CGMA, MST JBL Consulting LLC/New York, NY

Mr. Rich Lahijani is a professor of taxation at New York University's Stern School of Business. He is also a faculty member at City University of New York ("CUNY") where he teaches federal taxation, and graduate accounting courses.

Before coming to academia, Mr. Lahijani was a Senior Tax Manager at Deloitte Tax LLP, in their New York Tax Practice. Mr. Lahijani's primary focus was in the Real Estate sector in the tri-state area. Rich also served clients in the financial services, and hospitality areas. Mr. Lahijani has over 15 years of public accounting experience, and held a key leadership role in the tax consulting and structuring of one of the largest REIT IPOs in modern US history.

Mr. Lahijani is an accomplished speaker and has authored multiple articles, and professional publications.