Real Estate Partnership Returns: Reviewing Form 1065, Schedule K-1, and Attachments to Avoid Common Errors

Missing common elections and disclosures can prove costly. Electing out of bonus depreciation, Section 754 step-ups, and the repairs and maintenance elections are just a few items that require additional disclosures for a partnership to garner the related tax benefits. Continual partnership legislation leads to constant changes in partnership reporting requirements.

Tax practitioners sometimes scroll through Schedule B questions using the SALY (same as last year) approach. They may assume allocations are made following IRS guidelines and the partnership operating agreement. Knowing how to assess the accuracy of a return quickly is a skill. Knowing how to avoid common, costly errors is necessary for flow-through return preparers.

Listen as our panel of partnership experts explains how to avoid common real estate reporting errors, opportunities to expand services based on the Form 1065 review, allocating income under the partnership operating agreement, and other critical steps to ensure a complete and proper return is filed.

1. Reviewing Form 1065
   • Schedule B
   • Pages 1-5
   • Common M-1 adjustments
   • Schedule M-3
2. Recent changes
3. Form 8825
4. Common footnotes, elections, and other disclosures
5. K-1 items
   • Income allocations
   • Interpreting the partnership agreement
   • Maintaining capital accounts
   • Liabilities
6. Current considerations
   • Schedules K-2 and K-3
   • Cares Act
   • Consolidated Appropriations Act
7. Best practices

The panel will review these and other key issues:

• What recent changes have been made to Form 1065 and Schedule K-1?
• What are the critical elections when filing partnership returns?
• What are the key tax provisions to consider when reviewing a partnership agreement?
• What steps can practitioners take to self-review prepared partnership returns?
• What additional service opportunities can arise while reviewing Form 1065?

Learning Objectives

After completing this course, you will be able to:

• Recognize changes that have been made to Form 1065 and Schedule K-1
• Verify that Form 1065 and attachments are correctly completed
• Determine which key tax provisions should be considered when reviewing a partnership agreement
• Distinguish between recourse and nonrecourse debt
• Ascertain who qualifies as a reportable entity partner

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and their respective partners and shareholders.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).