Most of the real estate transactions utilize a partnership or limited liability company (LLC) structure. These entities file the partnership tax form - IRS Form 1065. Partnership taxation is extremely complex with numerous issues to address, including:
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Partner basis issues
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Allocation of profits and losses in accordance with partnership agreements and basis limitations
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Inside versus outside basis
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Section 754 "step up" elections
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Recourse versus Non-recourse versus Qualified Non-recourse debt
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Filing of M-1 versus M-3
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Minimum gain
In addition, many of our partnership clients have tax credits associated with them. These require the proper filing of:
Improper preparation of the partnership tax forms and elections can result in the loss of deductions and/or tax credits. Fortunately, we prepare hundreds of partnership tax returns each year and we have the knowledge and expertise to competently prepare the required tax filings.
Here's what you get......
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If we've done an audit of the partnership's financial statements, we will take the financials from the audit and make any necessary tax basis adjusting entries.
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If there was no audit, we will obtain the accounting information from you, analyze the information, prepare any adjusting entries that need to be made and obtain your approval of the financials.
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We then enter the financial information into the tax return and prepare the appropriate tax forms.
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We prepare any of the appropriate tax elections required for the tax return.
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Your tax return will be checked by our computer software to identify potential problems.
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Once prepared, the tax return is detail reviewed by a Tax Manager to insure that all of the appropriate forms, filings and elections have been made.
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We will then send you a draft of the tax return along with any investors that require it.
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Upon obtaining your and/or the investors approval, the tax forms are assembled and made ready for mailing to you.
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Finally a Tax Partner will do a final review of the return prior to mailing.
