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

Why 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

IRS issues proposed regulations for new partnership audit procedures

TAX ALERT

IRS issues proposed regulations for new partnership audit procedures

Proposed regulations would implement most aspects of the new audit regime, some issues were reserved on pending likely legislative changes.

IRS activates exception to nonrecognition on partnership contributions

TAX ALERT

IRS activates exception to nonrecognition on partnership contributions

Regulations provide rules governing contributions of property to a partnership having a foreign partner related to the contributing partner.

Will 2017 be the year to extend your 2016 tax return?

INSIGHT ARTICLE

Will 2017 be the year to extend your 2016 tax return?

This filing season brings many changes and unknowns that may cause taxpayers to revisit the question of filing an extension.

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

RSM is a proud sponsor of the Tax Executives Institute

  • March 19, 2017

LIVE WEBCAST

Partnership audits: What you should do now

  • March 22, 2017