Event Description

This course explains how 2020 rules regarding the presentation of partner capital accounts differ from preceding years. These new rules are very complex, so this course is essential for tax practitioners preparing 2020 partnership Form 1065. The presenters explain these rules in very practical and understandable terms.

Designed For

Tax practitioners preparing partnership income tax returns for 2020

Objectives

Be able to advise clients on how to determine and report their tax basis capital account for 2020

Major Subjects

Reconciling Schedule M-2 Form 1065 with Partnership K-1 Schedule L IRS requirement to report partner tax basis on the transactional approach How a partner’s outside basis and capital account differ Implications if a capital account is negative Deficit restoration accounts and qualified income offsets How to compute a partner’s initial tax capital account for 2020 Modified outside basis method and modified previously taxed capital method Determining a partner’s beginning capital account for 2020 for a partnership that did not use the tax basis method in 2019 Beginning capital account for partnerships and partners already reporting on the tax basis

Prerequisites

Basic knowledge of partnership rules

Instructions

None