- NY Credits : 2.0
- TX Credits : 2.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 2.0
Form 1065 - Partnership Loss Limitations
Most practitioners deal with Form 1065, U.S. Return of Partnership Income, on a regular basis. This program compares partnerships and corporations, explains how to determine a partner's basis, describes the at-risk rules, the passive activity rules, the general rules on recognizing gain or loss on the contribution of property, the calculation of basis, the factors that cause the basis of an individual partner to increase or decrease, the required adjustments to basis, how debt basis is allocated, the difference between a partner's capital account and a partner's basis, the methods of maintaining and reporting capital accounts, how to compute basis using the capital account, and the requirements for the IRC Sec. 754 election.
Upon successful completion of this course, the user should be able to:
explain the advantages and disadvantages of using a partnership,
discuss the factors that limit the deductibility of partnership losses including the at-risk rules and the passive activity loss rules,
describe the tax consequences of contributing property to a partnership,
explain the requirements for allocating realized gain on contributed property with built-in gains,
determine a partner's basis in a partnership acquired through compensation for services, and
discuss the differences between a partner's capital account and basis.