Tax and Accounting Implications Following a Partner's Death: Financial and Operational Considerations

Post-Mortem Planning for Treatment of Suspended Losses, Optional Basis Elections, and Continuity of Operations

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, February 9, 2016

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide tax advisers and professionals with a thorough and practical guide to the accounting and tax considerations that arise in a partnership upon the death of a partner. The tax code has numerous and specific provisions and requirements when a partner dies, and these provisions impact the partnership, as well as the deceased partner’s heirs and estate. The panel will discuss the impacts of partnership provisions on the partner’s final tax return, and will offer useful pre-mortem planning tools for navigating the complicated tax landscape that often accompanies the death of a partner.

Description

The death of a partner often brings unanticipated and unwelcome tax and accounting complications to the partnership, the partner’s estate and heirs, as well as the partner’s final income tax return. When a partner dies, the tax year of the partnership closes for that partner, requiring tax allocations and entries to the partnership’s books. In many instances, a partner’s death requires serious adjustments to how, or even if, the partnership will do business in the future.

Disposition of a partnership interest due to a partner’s death can involve basis elections to the successor partner’s interests, as well as questions as to how any suspended losses carried forward by the deceased partner must be treated for tax purposes. Tax advisers need to fully understand the consequences that arise when a taxpayer holding a partnership interest dies. By doing pre-mortem as well as post-mortem tax planning, tax advisers can position a taxpayer to avoid unnecessary complexities and negative tax consequences for his heirs and successors.

Listen as our experienced panel provides detailed guidance on the operations, accounting and tax impact of the death of a partner on the partnership and its existing partners, the heirs and successor partners, and the tax matters of the decedent in this in-depth webinar.

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Outline

  1. Effect of partner’s death on partnership operations and tax filings
  2. Allocations of partnership income/loss in year of death
  3. Effects on deceased partner’s final year income tax return
  4. Suspended loss treatment
  5. Distribution of partnership interest to beneficiaries
  6. 736(b) issues
  7. Pre-mortem planning considerations
  8. Post-death planning considerations

Benefits

The panel will discuss these and other critical questions:

  • What are the book entries required upon the death of a partner?
  • What is the effect on the tax year of partnership upon the death of a partner?
  • What elections are available upon the death of a partner?
  • What filings are required upon the death of a partner?
  • How are suspended losses treated for the deceased partner?
  • What are the planning opportunities and issues to be considered in pre-mortem planning?

Faculty

Sarah Allen-Anthony
Sarah Allen-Anthony
Tax Senior Manager
Crowe Horwath

Ms. Allen-Anthony specializes in partnership taxation. She is the founder and co-leader of her firm’s National...  |  Read More

Madhuri Thaker
Madhuri Thaker

Consultant
Plante Moran

Ms. Thaker works with high-net-worth families, corporations, partnerships, expatriates, and inpatriates on wealth...  |  Read More

Walter McGrail
Walter McGrail

Senior Manager
Cendrowski Selecky

As one of the firm’s senior tax and legal technicians, Mr. McGrail has provided consulting services to a...  |  Read More

John Alfonsi
John Alfonsi

Managing Director
Cendrowski Corporate Advisors

Mr. Alfonsi has 25 years of tax consulting, business valuation, litigation support and forensic accounting experience....  |  Read More

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