AIM 6354
Partnership Taxation
The University of Texas at Dallas
Su' 2003
5/9/2003
Lecturer: Ronald J. Blair, CPA, MBA
Office: JO 5.508H Hours: M-F, 9:00 - 5:00
Phone: 972-883-4090 Fax: 972-883-4095
Email: rblair@utdallas.edu
Website: http://utdallas.edu/~rblair/
Text: Lind, Schwarz, Lathrope, and Rosenberg, Fundamentals of Partnership Taxation
Sixth Edition, Foundation Press, 2002 (ISBN 1-58778-221-9)
Class discussion slides are based generally on the text. Other references include McKee,
Nelson & Whitmire, Federal Taxation of Partnerships and Partners, Third Edition, Warren,
Gorham & Lamont
In the frequent quotation of statute in the classnotes (slides), emphases of certain words and
phrases are added by the lecturer.
Grading: Three exams - 100 points each 300
Preparation of partnership return 100
Weekly preparation, class participation,
and problems 100
Total points 500
Objective: The course will include an analysis of the IRC, Treasury Regulations, and other authorities
relating to the taxation of partnerships. Its purpose is to give the student knowledge of the tax
considerations of this organizational form of operating a business, the effect, the advantages, disadvantages,
and pitfalls, as well al the responsibilities that go with it. It will also give the student an introduction to the
partnership return and its purpose.
Students should read the assigned chapters, IRC sections, Regs, prepare the weekly assigned problems,
and be prepared to discuss the problems in class voluntarily or when called upon. The student should
print a copy of each IRC section in Subchapter K for reference through the semester.
Students must bring Scantron Form No. 882-E for Exams - mandatory. Tests will be open book,
generally problems, rules, and concepts answered in true/false and multiple choice format.
Course schedule:
LSL&R
Wk Date Chapter IRC Treas. Regs.
Partnership Tax in Brief
1 22-May 1 Overview of Taxation of 761; 7701
Partnerships and Partners
Problems: p. 15
Building a Partnership
2 29-May 2 Formation of a Partnership 721 - 723; 704; 724
Problems: p. 33, p. 40, p. 43, p. 47, p. 56, p. 70, p.72
Rules of Partnership Operations - In General
3 5-Jun 3 Operations of a Partnership: 701 - 703; 704(d); 1.707-1; 1.702-1(b);
General Rules 705-706 1.703-1(a); 1.704-1(d)
Problem: p. 93; p. 96; p. 100;
#1, p. 108; #1, p. 116
Partnership Operations - Allocations
4 12-Jun 4 Partnership Allocations
A Introduction
B Special Allocations Under 704(b)
Section 704(b)
Problems: ##1 and 2, p. 155; and p. 167
Exam I
Chapters 1 - 3
Partnership Return
5 19-Jun Partnership Form 1065
Form 1065 Software - Computer Lab - JO 4.914
Allocations (cont'd)
6 26-Jun 4 Partnership Allocations (cont'd)
C Allocations With Respect 704(a) and (c) 1.701-3(a);
to Contributed Property 1.704-1(b)(1) and (2)
Problem: ##1 and 2, p. 189
D Allocation of Partnership 704(c)(1)(A); 752(a) - (c) 1.752-1; 752-2(a) - (c)
Liabilities
Problem: #1, p 207
E Allocations Where Partners' 706(c)(2)(B) and (d) 1.706-1(c)(4)
Interests Vary During the
Year
Problem: #2, p. 214
F The Family Partnership Rules 704(e) 1.704-1(e)(1) & (3)(i)(b)
Problems: p. 219
The Anti-Abuse Regs. - 1.701-2
10 The partnership Anti-Abuse 1.701-2(a) - (c);
Regulations 1.701-2(e), (h) & (i)
Problem: p. 391
(July 7 is Graduate Students' last day to withdraw from a course with an
automatic "W")
Partner / Partnership Transactions
7 3-Jul 5 Transactions Between 707(a)(1) and (c ); 1.707-1(a) and (c);
Partners and Partnerships 267(a)(1) - (d); 453(g) 1.707-3(a) - (d)
Problems: p. 228; #1, p. 234;#1 and #2, p. 242; #1 and #2, p. 248
Exam II
Chapter 4 and 10
Page 2
Partnership Interest Dispositions
8 10-Jul 6 Sales and Exchanges of 705(a); 706(c); 741, 742, 1.7061(c)(1) - (5);
Partnership Interests 743; 751(a) - (f); 752(a); 1.743-1(a) - (e);
754, 755 1.751-1(a) and (c);1.754-1;
1.755-1(a)
Problems: #1, p. 266; p. 268, p. 273; and #1, 281
Distributions - Operating
7 Operating Distributions 731, 732(a) - (d),733; 735; 1.731-1(a)(1) and (3);
Except E 751(a) - (d); 1245 1.732-1(a) - (d); 1.733-1;
1.735-1; 1.1245-4(f)(2)&(3)
Problems: ##1 and 2, p. 294; #1, p. 297; p. 303, and p. 308
Partnership Return Due
Liquidations / Terminations
9 17-Jul 8 Liquidating Distributions and 708(b)(1); 731, 732; 1.731-1(a)(2); 1.732-2(b);
Terminations - 735, 751 1.736-1(b)(4)
Problems: p. 325; #1, p. 338; p. 348, p. 354, p. 359; and #1, p. 370
Death of a Partner
9 Consequences of Partner's 694; 706(c); 708(b); 753; 1.742-1; 1.753-1(a)
Death 1014(a) & (c); 2033
Problems: p. 385 and #2, p. 387
Review of Partnership Return
S Corporations
10 24-Jul 11 S Corporations and Their 311(b); 1361, 1362, 1363;
Shareholders 1366(a) - (e), 1367, 1368;
1371, 1372; 1374, 1375;
1378
Problems: (a) thru (e), pp 403-404; (a) thru (e), pp 409-410;##1 and 2, pp. 432-433;
##1 and 3, pp. 436-437;#1, p. 443; and #1, p. 449
11 31-Jul FINAL EXAM
Comprehensive, w/ emphasis on chapters 5 - 11