Kaplan University School of Professional and Continuing Education Kaplan University School of Professional and Continuing Education

Getting to the K-1: Partnership Allocations under §§704(b) and 704(c) (GKPA4)

NEW! 4-Hour Program

WHY ATTEND THIS COURSE?

Partnerships are incredibly flexible tax devices, allowing many options in determining what appears on each partner’s K-1. IRC §§704(b) and (c) determine, in combination with the partnership agreement, the numbers that appear on each partner’s Schedule K-1.

In this course we’ll take a look at the responsibilities a CPA has in calculating the proper allocations to each partner. We’ll look at the mandatory adjustments for precontribution built-in gains or losses of each partner and the requirements to have partnership special allocations respected.

DESIGNED FOR...

CPAs responsible for advising partnerships on tax matters or preparing Schedule K-1s.

OBJECTIVE

Participants will be able to:

  • Recognize when the mandatory rules of §704(c) apply to contributions of property to a partnership
  • Calculate proper allocation under each of the three safe-harbor methods of handling §704(c)
  • List the requirements for an allocation to have substantial economic effect under the partnership regulations

MAJOR SUBJECTS

  • The difference between items impacted by §704(b) and §704(c)
  • How to apply the traditional method, traditional method with curative allocations and the residual method for contributed property
  • Situations that trigger a “reverse §704(c)” allocations
  • How to compute the partners’ §704(b) book capital accounts and why it matters
  • Applying a qualified income offset

COURSE ACRONYM: GKPA4

PRESENTATION METHOD: Group-live

LEVEL OF KNOWLEDGE: Intermediate

PREREQUISITES:

  • Five years experience in taxes including some work with partnerships

ADVANCE PREPARATION: None

FIELD OF STUDY: Taxes

RECOMMENDED CPE CREDIT: 4 hours


CPE Sponsor icon

SmartPros®, A Kaplan Company and Loscalzo Institute, A Kaplan Company are registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.