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

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by ACPEN. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.