PARTNERSHIPTAXATION-WVUCollegeofBusinessand合伙企业税收——西弗吉尼亚大学商业学院.ppt

1、PARTNERSHIP TAXATION,PRESENTED BY DR. AA NEIDERMEYER,OBJECTIVES,TO KNOW PARTNERSHIP DEFINITION TO UNDERSTAND BASIC TAX RULES TO UNDERSTAND TAX REPORTING TO BE AWARE OF SPECIAL TREATMENTS TO KNOW ADV/DISADV OF LLCs,PARTNERSHIP TAXATION,RETURNS ARE INFORMATIONAL ONLY INCOME IS CLASSIFIED BY TYPE AND A

2、LLOCATED TO PARTNERS INCOME IS TAXABLE TO PARTNERS EVEN THOUGH THEY DO NOT HAVE TO RECEIVE SAME PARTNERSHIPS MAKE ELECTIONS,PARTNERSHIP DEFINITION,A SYNDICATE, GROUP, POOL, JOINT VENTURE, OR OTHER UNINCORPORATED ORGANIZATION THROUGH OR BY MEANS OF WHICH ANY BUSINESS IS CARRIED ON AND WHICH IS NOT CL

3、ASSIFIED AS A CORPORATION, TRUST OR ESTATE BUSINESS ACTIVITY IS REQUIRED,SCOPE OF PARTNERSHIPS,LIMITED PARTNERSHIPS AND LIMITED LIABILITY COMPANIES ARE TREATED AS PARTNERSHIPS FOR TAX PURPOSES,PARTNERSHIP FORMATION,GENERAL RULE: NO GAIN OR LOSS IS RECOGNIZED BY A PARTNERSHIP OR ANY OF ITS PARTNERS W

4、HEN PROPERTY IS CONTRIBUTED TO A PARTNERSHIP IN EXCHANGE FOR AN INTEREST RULE APPLIES ON INITIAL AND SUBSEQUENT CONTRIBUTIONS,RULES EXCEPTIONS,RECEIPT OF PARTNERSHIP INTEREST CONSTITUTES INCOME IF RECEIVED FOR RENDERING OF SERVICES IF ENCUMBERED PROPERTY IS TRANSFERRED, A GAIN WILL BE RECOGNIZED IF

5、LIABILITY EXCEEDS BASIS OF PROPERTY TRANSFERRED,PARTNERS BASIS,ORIGINAL BASIS IS EQUAL TO THE BASIS OF THE PROPERTY TRANSFERRED PLUS CASH CONTRIBUTED TO THE PARTNERSHIP IF A GAIN WAS RECOGNIZED, BASIS IS INCREASED BY THIS AMOUNT IF A LIABILITY WAS ASSUMED, BASIS IS REDUCED BY THIS AMOUNT,REPORTING O

6、F INCOME,TWO-STEP REPORTING REQUIRED SEPARATE REPORTING FOR: CAPITAL GAINS AND LOSSES, SECTION 1231 GAINS AND LOSSES DIVIDENDS, INTEREST INCOME, CASUALTY GAINS AND LOSSES, TAX-EXEMPT INCOME, RETIREMENT CONTRIBUTIONS, CHARITABLE CONTRIBUTIONS AND MOST CREDITS ORDINARY INCOME IS REPORTED NEXT,INCOME R

7、EPORTING LIMITATION,PARTNERS MUST RECOGNIZE THE AMOUNTS REPORTED ON THEIR INDIVIDUAL K-1 FORMS FROM THE PARTNERSHIP PARTNERS DEDUCTIBLE LOSS FOR THE YEAR CANNOT EXCEED HIS/HER BASIS IN THE PARTNERSHIP UNUSED LOSSES-CARRIED OVER,DISTRIBUTIONS AND GUARANTEED PAYMENTS,NORMALLY WILL NOT RESULT IN A COMP

8、LETE TERMINATION OF THE PARTNERS INTEREST GENERALLY, NO GAIN OR LOSS UNLESS BASIS IS ZERO BASIS OF PROPERTY RECEIVED IS SAME A PARTNERSHIPS BASIS,GUARANTEED PAYMENTS,PAYMENTS MADE FOR SERVICES RENDERED OR FOR USE OF PARTNERS CAPITAL AND WITHOUT REGARD TO PARTNERSHIP INCOME PAYMENTS ARE ORDINARY INCO

9、ME TO THE PARTNER AND DEDUCTIBLE TO THE PARTNERSHIP,SELECTION OF A TAX YEAR,MAY SELECT A FISCAL YEAR IF JUSTIFIED ACCORDING TO CODE USUALLY ADOPTS TAX YEAR OF MAJORITY PARTNERS IF NOT ABOVE, ADOPT TAX YEAR OF ALL PRINCIPAL PARTNERS IF NOT ABOVE, LEAST DEFERRAL METHOD,TERMINATION OF PARTNERSHIP,IF BU

10、SINESS ACTIVITY CEASES IF WITHIN A 12 MONTH PERIOD, THE SALE OR EXCHANGE OF 50% OR MORE OF THE TOTAL INTERESTS IN THE PARTNERSHIP OCCURS,TRANSACTIONS: PARTNER AND PARTNERSHIP,PARTNER IS USUALLY REGARDED AS AN OUTSIDE PARTY HOWEVER, LOSSES ARE DISALLOWED FOR PARTNERS WITH 50% EQUITY IN PARTNERSHIP GA

11、INS TAXED AS ORDINARY INCOME IF O/S 50%,AT-RISK RULE,LOSSES LIMITED TO AT-RISK AMOUNTS NONRECOURSE LIABILITY: NO PERSONAL LIABILITY BEYOND EQUITY IN PROPERTY PLEDGED ENCUMBERED PROPERTY: ADJUSTED BASIS MINUS NONRECOURSE DEBT ON PROPERTY UNUSED LOSSES MAY CARRYOVER,LIMITED LIABILITY COMPANIES,ADVANTAGES: CONDUIT ENTITY NO GENERAL PARTNER REQUIRED MAY PARTICIPATE IN MANAGEMENT O/S IS NOT A SE