Schedule K-1 has evolved into the universal correspondent of tax information to business owners. This course utilizes practical case studies and detailed cases to take a deeper look into the vastness of Schedule K-1. The course will be advantageous to those who prepare complicated federal individual income tax returns, and for those who prepare the underlying Schedules K-1 for partnership or LLC pass-through entities.
Learning Objectives
- Understand complicated issues of partnership and LLC Schedule K-1 reporting issues
- Complete a comprehensive problem related to "at-risk" recapture
Major Topics
- Review of common and not-so-common line items on Forms 1065 Schedules K-1
- Discuss a proposal for a yet to be developed new tax form, which calculates basis, designed to be attached to individual returns
- Numerous examples of special allocation issues of 704, including economic effect, the "dumb-but-lucky" rule, and substantiality
- Determining substantiality, with examples of "some help, no hurt" allocations
- Advanced case for tracking a multitude of Schedule K-1 line items through Form 6251
- Case study finding "at-risk" hidden gains within Schedule K-1
- Partners' capital accounts and method of maintaining them
- When sales of depreciable property are not reported on Form 4797
- Practical case and examples of the proper allocation of recourse and non-recourse liabilities
- Finding hidden gains within partnership/LLC Schedule K-1
- Practical look at what options taxpayers have if they receive a Schedule K-1 that includes an error
