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Guide to Partner Capital Account Reporting (CPMB)

Monday, April 22, 2024
01:00 PM - 03:00 PM (Eastern)

Mike Tucker, Ph.D., LL.M., J.D., CPA

Lance Weiss, CPA, CVA

  • Format Webinar
  • Credits 2.00
  • Level Basic
  • Field of Study Taxes (2)

$99.00


Overview

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 webinar covers exactly that. For tax practitioners preparing partnership 1065 forms, this course explains these complex rules in practical and understandable terms.

Major Topics:

  • 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
  • The two types of adjustments under 754 and how 743 and 734 require different capital account presentations

Learning Objectives

  • Understand how a partner determines and reports his or her tax basis capital account 

Who should take this course:

Any tax practitioner who will be preparing partnership income tax returns

Basic understanding of tax rules relating to partnerships and partners

None

Yes

No

No

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