DESCRIPTION

The matters surrounding special allocations to partners and substantial economic effects are complex. This module addresses these concepts by explaining the importance of maintaining 704(b) capital accounts and how economic effect and substantiality are established. With a proper understanding of these factors, special allocations to partners will become more likely to be respected by the IRS. This module also discusses the theory and computations regarding targeted allocations. The concepts are reinforced by group exercises.

LEARNING OBJECTIVES

  • Discuss the 704(b) capital account requirements.
  • Examine the basic and alternative tests for economic effect.
  • Analyze the different factors that make an allocation substantial.
  • Discuss the concepts surrounding Targeted Allocations.

Prerequisites

4+ Years Professional Experience

Advanced Preparation

None

INQUIRE ABOUT THIS COURSE

Inquire Now