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  • videocam On-Demand
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

Schedule K-1 Disclosures for Pass-Through Entities: At-Risk, Basis, and Passive Activity Schedules

Sec. 163(j), QBI, 704(c), and Tax Basis Capital Reporting Requirements

$197.00

This course is $0 with these passes:

CPE
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Description

Recent changes have significantly increased the number of footnotes, supporting schedules, and required disclosures for Schedule K-1 for partnerships and S corporations. Some of these disclosures are effective for 2021 returns. There is a requirement for many of these disclosures with little guidance on the content of these necessary attachments.

The Section 199A deduction provides a valuable tax benefit for taxpayers. Aggregating non-SSTBs (specified service trade or businesses) is sometimes necessary to take advantage of the deduction. For individuals to properly make the election, pass-through entities need to disclose the required information to their partners and shareholders.

All partnerships must now disclose tax basis capital information, including current year increases and decreases. For partnerships not already using the "transactional approach," three additional methods can be used to calculate beginning tax basis capital.

Even changes that appear to be simple are not. Page 1 Item E, for entry of the TIN, prohibits the entry of TINs for disregarded entities. This change alone can require a significant time commitment for tax professionals to determine whether SMLLCs or grantor trusts are partners and then obtain the beneficial owner's underlying tax information.

Many of these disclosures will allow the IRS to flag returns for a more in-depth look, making it imperative for tax practitioners to prepare statements that satisfy requirements and deter the IRS.

Listen as our authoritative panel explains how to meet the latest K-1 reporting requirements, including those for 199A, 163(j), 704(c), negative and tax-basis capital reporting, and other recent additions to Schedule K-1.

Presented By

Mark Gallegos
Partner
Porte Brown, LLC

Mr. Gallegos, CPA, MST, is a tax partner on Porte Brown’s accounting and consulting services team in the Elgin, Illinois, office. He has more than 20 years of experience. Mr. Gallegos spends a great deal of time advising, speaking, and writing about international tax, mergers & acquisitions and credits and incentives. He has been entrenched in the intricacies of tax legislations and impending changes. Mr. Gallegos co-hosts a recurring webinar series on the topic and regularly speaks on tax legislation and other tax topics. Prior to working at Porte Brown, Mr. Gallegos worked for two national accounting firms focusing on middle market clients. He has a passion for helping clients navigate the complicated tax code and being their business advisor to help them be successful.

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Brian T. Lovett
Partner
Withum Smith + Brown, PC

Mr. Lovett has extensive experience serving the tax needs of both public companies and closely-held businesses, including all aspects of tax compliance for partnerships and corporations. He advises clients with regard to the structure and tax consequences of new business ventures, and assists with restructuring existing businesses for increased tax efficiency. Prior to joining his firm, he was with a “Big 4” accounting firm, working closely with large, multinational real estate investment companies.

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Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Date + Time

  • event

    Thursday, February 22, 2024

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Schedule K-1 changes: an overview
  2. Negative and tax basis capital reporting
  3. QBI
  4. 163(j)
  5. 704(c) gains and losses
  6. Passive losses
  7. Amounts at risk
  8. Disregarded entities
  9. Other required disclosures
  10. Partnership and S corporation disclosure differences

The panel will discuss these and other critical issues:

  • How to prepare supporting basis and at-risk schedules
  • How to disclose QBI to shareholders and partners for presentation on their individual income tax returns
  • Where, when, and how is 704(c) gain and loss information disclosed?
  • What should be disclosed for aggregation and grouping elections?

Learning Objectives

After completing this course, you will be able to:

  • Ascertain the new Form 1065 and 1120S reporting requirements
  • Recognize the requirements for meeting the tax basis capital provisions
  • Identify the impact of the new IRC 163(j) business interest limitation rules and the reporting requirements
  • Determine how to disclose IRC 704(c) gain and loss information
  • Establish the differences between partnership and S corporation disclosures
  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

BARBRI is 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 Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

BARBRI CE webinars-powered by Strafford-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .