CAPITAL ACCOUNTS 704(b) & MINIMUM GAIN

Slides:

Advertisements

Similar presentations

CAPITAL ACCOUNTS Increases to partner’s capital accounts

Advertisements

IPED 101 – TAX CREDIT BASICS CAPITAL ACCOUNTS 704(b) & MINIMUM GAIN.

Learn the Basics Housing Tax Credits 101 Edward S. Ryan, CPA Reznick Group.

Learn the Basics Housing Tax Credits 101 John Mackey, CPA Reznick Group.

Who Gets What When the Partnership is Liquidated Virginia Housing Credit Conference September 4-5, 2013 Presented By: Terence Kimm

Slide 7-1 Assignments For next class: Problems: C4-33, C4-34, C4-35, C4-37, C4-38, C4-40, C4-41, C4-42.

Partnerships Chapter 12. Objective 1 Identify the Characteristics of a Partnership.

Rate Earned on Average Total Assets n (January 1 Total assets + December 31 Total Assets) / 2 = Average Total Assets n Net Income after Federal Income.

CORPORATIONS: DIVIDENDS, RETAINED EARNINGS, AND INCOME REPORTING CHAPTER 15.

Chapter 20 Partnerships— Distributions, Sales and Exchanges ©2008 CCH. All Rights Reserved W. Peterson Ave. Chicago, IL

Taxation of Noncompensatory Partnership Options

Corporate & Partner Tax Instructor: Dwight Drake Partnership Liability Allocations What’s at stake – A Reminder - Partner’s deductible losses can not exceed.

ADVANCED PARTNERSHIP DEBT ALLOCATIONS Howard E. Abrams April/May 2014.

FA3 Cameron Morrill I. H. Asper School of Business University of Manitoba.

Statement of Cash Flows

Corporate & Partner Tax Instructor: Dwight Drake Partnership Distribution Rules - Review 1. No gain or loss on non-liquidating distribution, except to.

© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Partnerships Chapter 17.

Problem Area 4 -Partner Basis  Partners initial basis is determine under Sec What is the general rule for determining basis?  Partner bases change.

McGraw-Hill/Irwin Copyright (c) 2002 by the McGraw-Hill Companies Inc Principles of Taxation: Advanced Strategies Chapter 6 Chapter 6 Income and Allocation.

Partnerships 17.

Partnerships CHAPTER 9 Electronic Presentations in Microsoft® PowerPoint®

The Statement of Cash Flows Chapter 4 The Statement of Cash Flows Answers u u How Much Cash Was Provided by Operations u u What Amount of Property and.

Intro to Financial Management Understanding Financial Statements and Cash Flows.

Chapter 6: Allocation of Partnership Income Among the Partners: The Substantial Economic Effect Requirement.

© 2008 by South-Western, Cengage Learning Chapter 27 Chapter 27 Charles J. Jacobus Thomas E. Gillett.

Types of taxes. Income taxes are assessed as a function of gross revenues minus allowable expenses. Property taxes are assessed as a function of the value.

ACCOUNTING FOR PARTNERSHIPS Unit 10. ADMISSION OF A PARTNER The admission of a new partner results in the legal dissolution of the existing partnership.

Partnership Accounting. A Stylized Partnership Beth Andy Conrad Partnership.

Supplements.  Profit-making enterprises  Sole proprietorship:  Partnership:  Corporation:

IHG Cash flow statement. Cash flow statement- operations.

Chapter 20 Ownership Structures for Financing and Holding Real Estate.

Partnerships Chapter Journalizing the entry for formation of a partnership. Learning Objective 1.

McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 18: Structuring Real Estate Investments: Organizational.

Income Tax Considerations Converting to after tax cash flows.

The Accounting Equation During 2007, Total Liabilities for XYZ Inc. increased $60,000 and Total Assets increased by $50,000. What changes must have occurred.

Chapter 6 6 Corporate Liquidating Distributions. Slide 7-2 In General A liquidating corporation is essentially taxed as if it had sold all of its assets.

McGraw-Hill© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Ch. 3 - Understanding Financial Statements and Cash Flows , Prentice Hall, Inc.

Chapter 2 2 Corporate Formations and Capital Structure (Day 3)

 A partnership is am unincorporated from of business organization owned by two or more partners.  A partnership often is referred to as a firm.  A partnership.

2) Presenting the contribution as a Group of Assets: In this case all the assets presented should be recorded according to the fair value (market value).

بسم الله الرحمن الرحيم. COMPANIES ACCOUNTING The Course Contents : (1) Accounting for Partnership. The Formation of the Partnership. The Net Income Allocation.

Chapter Fifteen Partnerships: Termination and Liquidation Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution.

Legal Issues Impacting Nonprofit Properties Financed with LIHTCs

بسم الله الرحمن الرحيم.

Lease Accounting 22.2 LO2 Financial leases are essentially treated as debt financing Present value of lease payments must be included on the statement.

Dispositions of Partnership Interests and Partnership Distributions

Chapter Objectives Be able to: Identify when a partnership exists.

Trial Balance Presented by: Leo, David, Sungtae, Ashley, Taiyuan.

CAPITAL ADJUSTMENT ACCOUNT AND CALCULATION OF GOODWILL

Principles of Taxation: Advanced Strategies

Chapter 10: Partnership formation & Operation

Introduction to Using Financial Accounting Information, 7/e

CHAPTER 3 Financial Statements, Cash Flow, and Taxes

Partnership Liquidations

Partnership Exit Strategies

State Tax Credits – Brief Overview

Intro to Financial Management

Financial statements for a partnership report the details of each partner’s capital. In a liquidation the assets are sold, creditors are paid, and any.

Chapter 12 Partnership Distributions

©2008 Prentice Hall, Inc..

Taxation of Individuals and Business Entities

Accounting for Partnerships and Limited Liability Companies

Chapter 27/ Chapter 25 ________________ Investing in Real Estate

Partnerships Chapter 17 2.

Liquidation of the Partnership

Ch. 2: Financial Statements, Taxes, and Cash Flow

Distributions Actual and Deemed

Financial Markets – Fall, 2019 – Oct 17, 2019

Presentation transcript:

CAPITAL ACCOUNTS 704(b) & MINIMUM GAIN

CAPITAL ACCOUNTS Increases to partner’s capital accounts Cash contributed Fair market value of property contributed Net of liabilities assumed by partnership Allocations of income or gain Decreases to partner’s capital accounts Cash distributed Fair market value of property distributed Allocations of loss or deduction, most credits

Partnership Agreement TAX CREDITS Partnership Agreement $ $ $ Developer Investor Limited Partnership Capital Account CREDITS LOSSES

Developer Investor Limited Partnership Capital Account CREDITS LOSSES

704(b)!!! $ CREDITS LOSSES Does not receive credits or losses 704(b) Issues $ Developer Investor Limited Partnership Does not receive credits or losses Cannot use credits or losses Must pay an adjuster to the Investor Capital Account CREDITS LOSSES 704(b)!!!

Minimum Gain What is it? How does it help a 704(b) problem? Assumed sale of asset at year end Assumed sale price of non-recourse debt plus $1 Gain is calculated Assumed Sale price less Net Book Value How does it help a 704(b) problem? Assumed Minimum Gain is allocated to partners Losses can continue to flow to partners with negative capital accounts Credits flow to the investor partner

LIMITED PARTNER IRC 704(b) REALLOCATION

Find FREE tax credit resources at: Questions??? Find FREE tax credit resources at: www.taxcredithousing.com E-mail us at Dan.smith@novoco.com