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This book helps addresses the tax consequences of the most common transactions engaged in by limited liability corporations (LLCs)and partnerships. You will develop a level of comfort with the basic conceptual framework underlying partnership and LLC taxation, as well as gain an explanation of the tax consequences associated with issues most frequently confronted by tax practitioners. Topics covered include: basic tax structure of partnerships and LLCs; electing to be taxed as a partnership: "check-the-box" rules; tax consequences of partnership or LLC formation; partnership distributions; compensatory payments to partners; at-risk and passive activity limits; profit and loss allocations: general rules and restrictions; and reporting taxable income for partnerships and LLCs.
List of contents
Chapter 1 1-1Overview: Basic Tax Structure of Partnerships and LLCs 1-1What is a partnership for federal income tax purposes? 1-2Partnerships versus other entities 1-3Electing to be taxed as a partnership: The "check-the-box" rules 1-11Overview of the basic framework of partnership taxation 1-14Partnership operations 1-16Chapter 2 2-1Tax Consequences of Partnership or LLC Formation 2-1Determination of basis 2-2Effect of entity operations 2-3Effect of liabilities 2-4Partnership interests obtained for services 2-11Transfer of a capital interest 2-13Transfer of a profits interest 2-17Campbell 2-20Lessons for tax advisers 2-22Chapter 3 3-1Partnership Distributions 3-1Introduction 3-2Liquidating distributions: Proportionate 3-11Sale of distributed property 3-15Section 736: Death or retirement of a partner from professional services partnerships or LLCs 3-16Chapter 4 4-1Compensatory Payments to Partners 4-1Introduction 4-2Self-employment income of partners 4-15Proposed regulations concerning limited partners' self-employment income 4-17Chapter 5 5-1At-Risk and Passive Activity Limits 5-1Overview 5-2Basis and at-risk limitations 5-7Gross income from passive activities 5-14Passive activity deductions 5-17Who is subject to the passive loss limitations? 5-18What are passive activities? 5-19Rules of application 5-29Grouping activities 5-34Chapter 6 6-1Overview of Profit and Loss Allocations: General Rules and Restrictions 6-1Introduction 6-2Section 704(b): Allocations must have "substantial economic effect" 6-3Allocations with respect to contributed property: Section 704(c)(1)(A) 6-15Chapter 7 7-1Reporting Taxable Income for Partnerships and LLCs 7-1Overview: Partnership tax return 7-2General tax payment and reporting scheme 7-9Form 1065: Income 7-14Form 1065: Expenses 7-18Schedules K and K-1 7-26Interpreting Schedule K-1 7-38Appendix A A-1Sample Partnership Tax Return A-1Facts and financial data A-3Glossary Glossary 1Index Index 1Solutions Solutions 1Chapter 1 Solutions 1Chapter 2 Solutions 3Chapter 3 Solutions 4Chapter 4 Solutions 5Chapter 5 Solutions 7Chapter 6 Solutions 8Chapter 7 Solutions 1
About the author
Larry Tunnell, Ph.D., CPA, is a professor in the accounting department at New Mexico State Univeristy.
Robert Ricketts, Ph.D., CPA, is the Frank M. Burke Chair in Taxation, Department Head of Accounting at the Rawls College of Business, Texas Tech University. He has written numerous books on the taxation of partnerships and limited liability companies.
Summary
This book helps addresses the tax consequences of the most common transactions engaged in by limited liability corporations (LLCs)and partnerships. You will develop a level of comfort with the basic conceptual framework underlying partnership and LLC taxation, as well as gain an explanation of the tax consequences associated with issues most frequently confronted by tax practitioners. Topics covered include: basic tax structure of partnerships and LLCs; electing to be taxed as a partnership: "check-the-box" rules; tax consequences of partnership or LLC formation; partnership distributions; compensatory payments to partners; at-risk and passive activity limits; profit and loss allocations: general rules and restrictions; and reporting taxable income for partnerships and LLCs.
