Compass Tax Educators

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