Guide to Partner Capital Account Reporting
December 31st, 2024 - December 31st, 2024 @ 10:50am-12:30pm
| Member Price | $70 |
| Non-Member Price | $95 |
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Credits
2Description
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 program explains these complex rules in practical and understandable terms.Objectives
- Understand how a partner determines and reports his or her tax basis capital account
Major Subjects
- 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