Most practitioners deal with Form 1065, U.S. Return of Partnership Income, on a regular basis. This program explores the multitude of deductions that may be available to the partnership, including compensation, repair and maintenance expense, bad debt expense, rents, taxes, interest expense, depreciation, depletion, expenses for retirement plans and employee benefit programs, amortization of start-up costs and IRC §197 intangibles, meals, travel and entertainment expenses, and the IRC §199 deduction. It also contains the IRS tables on the limitations on depreciation deduction for passenger automobiles, trucks, and vans, and in the case of leased vehicles, tables containing the inclusion amount that is added to gross income for passenger automobiles, trucks, and vans.

This program includes expert analysis by Ian J. Redpath, JD, LLM, and Michael J. Tucker, LLM, CPA, on audio and video.

Use of Materials

Audio or DVD
The user should begin by watching the DVD segment or listening to the audio CD for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD or listening to the audio CDs and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or DVD or audio CDs that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.

Online
The user should begin by watching the streamed video segment, if any, or listening to the streamed audio segment, if any, for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the streamed video, if any, or listening to the streamed audio, if any, and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or video/audio, if any, that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.

Chapter 1 discusses the rules regarding the deductibility of salaries and wages paid to employees.

Chapter 2 explains guaranteed payments, including recognition of income by the receiving partner and the deductibility of the payment by the partnership.

Chapter 3 addresses how to evaluate whether the cost of repairs and maintenance should be expensed or capitalized.

Chapter 4 takes a look at the requirements for claiming a bad debt deduction and the methods of writing off bad debts.

Chapter 5 explains the requirements for deducting rents, the factors used in determining when a lease is actually a purchase, and how to calculate the automobile lease inclusion amount.

Chapter 6 describes the deductibility of taxes and fees paid by a partnership.

Chapter 7 discusses the types of nonseparately and separately stated interest expense and the interest that should be reported on Schedule A as part of cost of goods sold.

Chapter 8 examines Form 4562, the new IRC §179 deduction limits, the methods and conventions used in depreciating property, bonus depreciation, the depreciation deduction limits on automobiles, and the current standard mileage rates.

Chapter 9 takes a look at the property eligible for depletion and the applicability of the cost and percentage depletion methods.

Chapter 10 addresses the deductible costs related to pension, profit sharing, and other plans, as well as the forms required to be filed by employers maintaining these plans, and the deductible costs associated with employee benefit programs such as health insurance payments and fringe benefits.

Chapter 11 considers the deductions available for organizational and start-up costs, as well as IRC §197 intangible assets, meals, travel, and entertainment expenses.

Chapter 12 explores the IRC §199 deduction available for certain qualified production activities.

Chapter 13 provides tables pertaining to the depreciation deduction limitations on passenger automobiles, trucks, and vans placed in service in 2009, as well as tables with the inclusion amount that must be added to gross income by taxpayers who leased passenger automobiles, trucks, or vans in 2009.

The Appendix provides a list of the common credits available to individual partners.

Helpful Guidance

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this program includes the following designations:

A Biskalert is intended to warn the practitioner of a particular situation that may require action or other consideration by the taxpayer or the practitioner on behalf of the taxpayer.

A Biskpoint presents analysis or commentary that attempts to explain or clarify statutory or regulatory authority or decisions by the judiciary.

A Bisktip provides practical advice that may be used to help improve client service or service to the practitioner's organization.

Ian J. Redpath, JD, LLM, is a nationally recognized tax attorney and consultant from Buffalo, New York. He is a principal in the Redpath Law Offices in Buffalo and New York City where he specializes in tax litigation matters. Mr. Redpath has published numerous articles on contemporary tax issues and co-authored several books. He has extensive national and international experience in developing, writing, and presenting professional CPE programs. Mr. Redpath holds a Bachelor's degree from Hillsdale College, a JD from the University of Detroit, and an LLM (tax emphasis) from the University of Wisconsin. In addition to his active tax practice, he serves as an Associate Professor of Taxation at Canisius College in Buffalo. (Contributing Author/Speaker)

Michael J. Tucker, LLM, CPA, is a consultant with the accounting firm of T.M. Byxbee Company, P.C., in Hamden, Connecticut. In his practice, Mr. Tucker handles a wide variety of client transactions, including mergers and acquisitions, entity formations and dissolutions, and distributions to owners/shareholders/partners. He is also a Professor of Accounting at Quinnipiac University in Hamden, Connecticut. Author of over 100 articles and books dealing with various tax topics, Mr. Tucker is a frequent lecturer at conferences and seminars throughout the country. Recently, Mr. Tucker has expanded his practice and lecturing to include topics related to the workplace, including sexual harassment and employer/employee relations. He holds an LLM in Taxation from Georgetown University Law Center, a Juris Doctorate from New York University School of Law, a PhD in Accounting from University of Houston, and an MBA from New York University. (Contributing Author/Speaker)