Study Guide for Corporate and Partnership Taxation The Study Guide is provided to guide you through the course material in a step by step format. Reading assignments are for IRS Publications 541 and 542. Step 1: Obtain the reference text Step 2: Review the Study Guide Step 3: Print review questions and final exam Step 4: Complete exams online Lesson and Objectives Reading Assignment Review Questions Section 1--Partnership Taxation 1. Forming a partnership Chapter 1 #1-3 Organizations classified as partnerships Family partnerships Partnership agreement 2. Terminating a partnership Chapter 2 None When and how a partnership is terminated 3. Exclusion from partnership rules Chapter 3 None How certain partnerships can be excluded from being treated as a partnership for tax purposes 4. Tax year Chapter 4 None Course 1010.07 Study Guide www.funcpe.com Page 1 of 5
Required tax year Exceptions to required tax year 5. Partnership return (Form 1065) Chapter 5 #4 Who must file Due dates 6.Penalties Chapter 6 #5-6 Types and amounts of penalties for failing to file partnership returns correctly and on time 7.Partnership income or loss Chapter 7 #7 How a partnership computes its income and which deductions are not allowed to a partnership 8. Partner's income or loss Chapter 8 #8-11 How a partner's income or loss is calculated and which taxes may apply to that income or loss 9 Partnership distributions Chapter 9 #12-13 What is considered a partnership distribution Partner's gain or loss recognized in a distribution Partner's basis for distributed property 10. Transactions between partnership and partners Chapter 10 #14-15 Course 1010.07 Study Guide www.funcpe.com Page 2 of 5
How transactions between a partner and his partnership are treated Guaranteed payments Sale or exchange of property Contribution of property Contribution of services 11. Basis of partner's interest Chapter 11 #16-17 Which items affect the basis on an interest in a partnership Adjusted basis Effect of partnership liabilities on basis 12. Disposition of partner's interest Chapter 12 None The treatment of gain or loss from their disposition of an interest in a partnership 13. Adjusting the basis of partnership property Chapter 13 None When and under what circumstances a partnership can adjust the basis of its property due to a distribution Section 2--Corporate Taxation 1. Business taxed as a corporation Chapter 1 None What types of businesses are taxed as corporations 2. Property exchanged for stock Chapter 2 None Course 1010.07 Study Guide www.funcpe.com Page 3 of 5
Tax implications for property transferred to a corporation in exchange for stock 3. Capital contributions Chapter 3 #18 Tax treatment of contributions from shareholders and nonshareholders 4. Paying and filing income taxes Chapter 4 #19 Estimated tax Income tax return U.S. real property interest 5. Income and deductions Chapter 5 #20-25 Below-market loans Capital losses Charitable contributions Corporate preference items Dividends-received deduction Extraordinary dividends Going into business Related persons 6. Figuring taxable income Chapter 6 #26 Net operating losses Course 1010.07 Study Guide www.funcpe.com Page 4 of 5
At-risk limits Passive activity limits 7. Figuring tax Chapter 7 #27 Tax rate schedule Credits Recapture taxes Alternative minimum tax (AMT) 8. Accumulated earnings tax Chapter 8 #28 9. Distributions to shareholders Chapter 9 #29-30 Money or property distributions Distributions of stock or stock rights Constructive distributions Reporting dividends and other distributions Course 1010.07 Study Guide www.funcpe.com Page 5 of 5