Tax Reporting for Partnerships


This course is intended to provide an overview of the principles involved in the reporting of business activities by partnerships. It begins with a review of the different types of partnerships that may be formed under the US tax code and discusses the pass-through of profits and losses to partners. Next follows a discussion of a partner’s basis in a partnership and the various events that can cause that partner’s basis to change during the course of business activity. This is followed by a presentation and discussion of the forms from the Form 1065 family that are most commonly used for reporting, and finally, the course culminates in a worked example of a tax return prepared for a domestic general partnership. 

Although it is not intended to be a thorough review of the intricacies that can be involved in complicated partnership situations, the course serves to orient the student to preparing tax returns for partnerships and creates familiarity with the most commonly-used forms.

Learning Objectives

Upon conclusion of this course, students will be able to:
  • use background information provided about a partnership to correctly identify the forms used to report the partnership’s annual activities to the IRS and to its partners
  • given examples of certain events that took place within the tax year relating to a partnership, correctly calculate the effect on the basis of the partners
  • given examples of partnership guaranteed payment and distributive share agreements, correctly calculate the amount of money that would be included by the partners on their individual tax returns based on the partnership’s operating results for the year
  • identify the main purpose of the main sections of Form 1065, and the type of information contained in each section
  • given details of a partnership’s income and deductions for the year, identify the locations where each item should be reported on Form 1065 including the carry-over to Schedule K-1 for each partner

Tax Year: 2019

Designed For

Tax professionals looking to refresh their knowledge of the more common situations encountered in tax preparation for partnerships
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