Chapter 17 Partnerships and S Corporations
Chapter 17 Partnerships and S Corporations
Learning Objectives Determine the tax implications of a partnership formation Apply the operating rules for partnerships Understand the tax implications (to the partnership and its partners )of distributions to partners Understand the requirements for electing and maintaining S Corporation status Apply the operating rules for S Corporations Determine tax treatment of an s corporations shareholders
Learning Objectives • Determine the tax implications of a partnership formation • Apply the operating rules for partnerships • Understand the tax implications (to the partnership and its partners) of distributions to partners • Understand the requirements for electing and maintaining S Corporation status • Apply the operating rules for S Corporations • Determine tax treatment of an S Corporation’s shareholders
Types Of Flow-through Entities Partnerships s corporations Limited liability companies(LLC) Limited liability partnerships(LLP)
Types Of Flow-through Entities • Partnerships • S corporations • Limited liability companies(LLC) • Limited liability partnerships(LLP)
Flow-through Entities Entail taxation, only at the ownership level. This single level of taxation, is achieved by: (1)exempting the entity from taxation (2)passing income, deductions, losses, and credit through to the owners, and (3 )adjusting the basis of the owners'interest in the entity
Flow-through Entities: • Entail taxation, only at the ownership level. This single level of taxation, is achieved by: – (1) exempting the entity from taxation – (2) passing income, deductions, losses, and credit through to the owners, and – (3) adjusting the basis of the owners’ interest in the entity
Taxation Of Partnerships Formation of a partnership Partnership operations Special allocations Allocation of partnership income, deductions, losses and credits to partners Basis adjustments for operating items
Taxation Of Partnerships • Formation of a partnership • Partnership operations • Special allocations • Allocation of partnership income, deductions, losses, and credits to partners • Basis adjustments for operating items