Menu

Partnership Tax Planning 

Partnerships and limited liability companies enjoy substantial tax advantages compared to corporations. They avoid the “double-tax” imposed on the income of large or publicly traded C corporations, and they also enjoy much greater flexibility than S corporations. These advantages come at the cost of considerable tax complexity. 

Seemingly simple transactions, which would not require tax planning if done in a corporation or sole proprietorship, can present tax planning opportunities as well as traps for the unwary. Understanding when to consult with a specialist in partnership taxation can be very important.

  • Some frequently asked partnership tax questions include:
  • How should a new or existing partner who performs services as a manager be compensated? 
  • How can self-employment and net investment income taxes be minimized?
  • How should profits interests be structured?
  • What is the best way to take in a new partner, transfer a partnership interest or liquidate a partnership? 
  • What are the consequences of incurring or paying partnership debt or changing the way the partners share in a partnership liability?
  • What should be done in anticipation of a merger or acquisition?
  • Is the partnership agreement structured and drafted properly, from a tax perspective?

RSM can help answer these questions and advise you generally on the tax issues presented by your business plans and strategies.


Recommended Insight

VIDEO

Every private equity and real estate partnership needs to be rewritten

Changes to U.S. tax law likely mean more audits of private equity and real estate partnerships.


Related Insights

2017 year-end planning guide

INSIGHT ARTICLE

2017 year-end planning guide

Review legislative changes and other tax concerns that affect 2017 tax compliance and how to plan for 2018. Download our guide.

Proposed regulations reduce regulatory burden on partnership election

TAX ALERT

Proposed regulations reduce regulatory burden on partnership election

IRS issues proposed regulations removing the requirement that a section 754 election statement must be signed for the election to be valid.

Partners indirectly affected by disasters may qualify for relief

TAX ALERT

Partners indirectly affected by disasters may qualify for relief

Passthrough investors whose K-1s come from entities located in covered disaster areas may be afforded tax relief.

Receive our tax newsletters by Email

Subscribe


How can we help you with your tax planning & compliance?


Related Resources

Financial Services

Real Estate


UPCOMING RSM TAX EVENTS

IN-PERSON EVENT

Navigating tax credits and incentives in construction and real estate

  • October 25, 2017

LIVE WEBCAST

Annual tax update for nonprofit organizations

  • October 31, 2017

LIVE WEBCAST

Retirement plan issues and insights

  • November 02, 2017