Don Farmer’s 2024 Up-to-the-Minute Update on Self-Employment Tax for Partners in Partnerships

Overview

If you prepare Form 1065s or have clients who receive K-1s from partnerships, you will want to attend this course! The IRS is battling with some of the largest partnerships in the Country over self-employment taxes and this will have major implications for all partnerships going forward. We’ll provide a broad overview of self-employment tax application for partners including LLC members and Limited Partners including up-to-the-minute changes. We will provide planning ideas on structuring to minimize self-employment tax for partners. We’ll also cover the benefits of paying SE tax (an often-overlooked element of planning).

Highlights

Which LLC members are subject to self-employment tax
How self-employment tax applies to spouses of LLC members
The IRS's new audit campaign for self-employment tax on LLC members
How to minimize self-employment tax for LLC members
Identifying which LLC members benefit from paying self-employment tax
New cases affecting self-employment tax for limited partners, including Denham Capital LP and the "functional analysis test"

Prerequisites

None

Designed For

Participants should have at least 2 years of experience in the tax area, particularly with preparation of Form 1065 for LLCs and Limited Partnerships.

Objectives

Identify when self-employment tax does not apply to LLC members and limited partners, Understand and apply self-employment tax principles to LLC members and limited partners,
Explore tax-saving strategies for spouses who jointly own an interest in an LLC, Recognize the benefits of self-employment tax payments, including potential Social Security benefits, and Analyze self-employment tax distinctions across general partnerships, limited partnerships, LLCs, and LLPs