Income Tax – Partnerships

Overview:

This course highlights the manner in which partnerships and their partners are taxed, with reference to the relevant statutory provisions, case law and CRA administrative positions. The course provides you with 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 in order 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: 

• Describe 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.