Larry Tunnell - Advanced Tax Strategies for LLCs and Partnerships

1 Cover

2 Chapter 1: Allocation of Partnership and LLC Income Under Section 704(b) Economic effect: The general test Deemed economic effect Alternate test for economic effect Substantiality Denied allocations: Determining the partners’ or LLC members’ interests in the entity Other issues Allocation of deductions attributable to nonrecourse debt Summary Notes

3 Chapter 2: Allocations With Respect to Contributed Property: Section 704(c)(1)(A) The traditional method The traditional method with curative allocations The remedial allocations method Special rules Summary Notes

4 Chapter 3: Allocation of Partnership Recourse Liabilities Under Section 752 How liabilities affect partner tax consequences Allocation of liabilities among the partners: In general Allocation of recourse liabilities Notes

5 Chapter 4: Allocation of Partnership Nonrecourse Liabilities and Related Deductions Under Sections 752 and 704(b) Distinguishing between recourse and nonrecourse liabilities Allocation of nonrecourse debts Treatment of contingent liabilities Notes

6 Chapter 5: Advanced Distribution Rules Non-liquidating distributions generally Distribution of multiple properties Summary Notes

7 Chapter 6: Adjustments to the Basis of Partnership or LLC Assets Section 743: Adjustments following the transfer of a partnership interest Distributions of partnership property Allocating the adjustment amount among partnership properties Notes

8 Chapter 7: Sale of an Interest in a Partnership or LLC General tax consequences associated with sale “Hot” assets and Section 751(a) Collectibles and unrecaptured Section 1250 gain Installment sales Net investment income tax Sale of an active (non-passive) interest in a partnership or LLC Sale of a passive interest in a partnership or LLC Purchaser of a partnership interest Notes

9 Tax Glossary

10 Index

11 Solutions Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7

12 End User License Agreement

1 Cover

2 Table of Contents

3 Begin Reading

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2 ii Notice to readers Advanced Tax Strategies for LLCs and Partnerships is intended solely for use in continuing professional education and not as a reference. It does not represent an official position of the American Institute of Certified Public Accountants, and it is distributed with the understanding that the author and publisher are not rendering legal, accounting, or other professional services in the publication. This course is intended to be an overview of the topics discussed within, and the author has made every attempt to verify the completeness and accuracy of the information herein. However, neither the author nor publisher can guarantee the applicability of the information found herein. If legal advice or other expert assistance is required, the services of a competent professional should be sought. You can qualify to earn free CPE through our pilot testing program. If interested, please visit https://aicpacompliance.polldaddy.com/s/pilot-testing-survey . © 2019 Association of International Certified Professional Accountants, Inc. All rights reserved. For information about the procedure for requesting permission to make copies of any part of this work, please email copyright-permission@aicpa-cima.com with your request. Otherwise, requests should be written and mailed to Permissions Department, 220 Leigh Farm Road, Durham, NC 27707-8110 USA. ISBN 978-1-11974-873-1 (Paper) ISBN 978-1-11974-903-5 (ePDF) ISBN 978-1-11974-902-8 (ePub) ISBN 978-1-11974-904-2 (oBook) Course Code: 745229 DTT GS-0419-0A Revised: March 2019

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BY LARRY TUNNELL, PH.D., CPA, AND

ROBERT RICKETTS, PH.D., CPA

Notice to readers

Advanced Tax Strategies for LLCs and Partnershipsis intended solely for use in continuing professional education and not as a reference. It does not represent an official position of the American Institute of Certified Public Accountants, and it is distributed with the understanding that the author and publisher are not rendering legal, accounting, or other professional services in the publication. This course is intended to be an overview of the topics discussed within, and the author has made every attempt to verify the completeness and accuracy of the information herein. However, neither the author nor publisher can guarantee the applicability of the information found herein. If legal advice or other expert assistance is required, the services of a competent professional should be sought.