TAX 613 - Federal Taxation of Partnerships and Other Pass-Thru Entities

3 Credit(s)

Students study how partnerships and partners are taxed. They learn the characteristics of various Pass-Thru entities, which enable them to advise clients on the advantages and disadvantages of the entity choice. They will be able to advise clients as to how to form a partnership without incurring an income tax. They learn how each partner’s adjusted basis is computed and affected by indebtedness, contributions, and distributions. They learn what special allocations are permissible and how those allocations can meet a client’s business needs. Moreover, they acquire the knowledge and analytical skills necessary to ensure that tax costs are minimized and tax benefits maximized when a partnership is sold or is liquidated. They will be able to evaluate tax benefits and tax costs depending upon how a sale or liquidation is structured. This is an elective class. Prior coursework in taxation is recommended.