This course discusses Forms K-1 from partnerships and LLCs that are taxed as partnerships, as well as publicly traded partnerships (PTPs). The class covers the items on the K-1 form and how they affect the 1040 return, including the disposition of the LLC or partnership interest. Additionally, specific rules for PTPs, including reconciling the 1099-B and final K-1 for the disposition of the PTP interest will be addressed.

Learning Objectives

  • Identify which items belong in the guaranteed payments section.
  • Understand which items affect self-employment income and which members or partners should be reporting SE income.
  • Know the difference between the member or partner’s capital account and basis in the entity.
  • Compare how basis, at-risk, passive, and new §461(l) excess business losses are applied to K-1 losses.
  • Be able to describe the complex rules and many forms required for proper PTP reporting.

Education Information

Length: 100 minutes plus question-and-answer session

Prerequisite: None

Advanced Preparation: None

Program Level: Intermediate

IRS Program Number for Self-Study On-Demand Webinar: NMVBP-T-00148-20-S 

Delivery Method: Self-Study

Field of Study: Federal Tax (IRS)

Credit hours: 2 IRS

Instructor: Kevin C. Huston, EA, USTCP Click here to learn more about the instructor

All continuing education credit is provided through Gregory & Associates, Inc. which is doing business as Compass Tax Educators. Click here for more information regarding our education policies.

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