Partnership Tax (3 credits)

This course is an introduction to the federal income taxation of LLCs and partnerships and their owners, which is governed by subchapter K of the Internal Revenue Code. Under subchapter K, there is no entity-level tax on LLC or partnership, and amounts of income, gain, loss, deduction and credit recognized by the entity flow through to its owners to be reported on the owner’s tax return. The course covers the formation, operation and liquidation of flow-through entities, as well as allocations of their income to their owners and distributions of cash and property by the entities. In addition, S corporations, another type of flow-through entity (though not taxed under subchapter K), may be covered. Prerequisites: Taxation I