Income Tax – Partnerships
Overview:
The whole is always greater than the sum of its parts. In the case of partnerships, this maxim rings true, especially with the extra complexities involved in discerning tax rules for these entities. To resolve these challenges, this course highlights the way partnerships and their partners are taxed, with reference to the relevant statutory provisions, case law, and CRA administrative positions. The course provides an overview of the “what” and “why” issues in preparing returns and prepares you to better advise clients with or considering partnership structures.
Partnerships are commonly used business vehicles/structures; however, the taxation of partnerships and their partners is quite different from that of corporations and their shareholders. Accountants who regularly advise business owners should be aware of how these taxation rules differ from their clients in corporate structures to advise clients with or considering partnership structures.
Course Content:
In this course, you will gain knowledge about the following topics:
- Creating legally effective partnerships
- Tax treatment of income and losses
- Calculation of ACB of partnership interests
- Transferring property to partnerships
- Dissolving partnerships
- At-risk rules and their impact on income, losses, and ACB
- GST and partnerships
Learning Objectives:
Upon completing this course, you should be able to:
- Explain tax concepts and rules applicable to partnerships
- Analyze the computation of partnership income and partnership ACB
- Identify potential planning opportunities or traps for members of partnerships
Who Will Benefit:
Accountants who prepare partnership returns or who advise clients that use partnerships.