This course is the first in a 2-part series that covers tax issues that can affect investment partnerships and their partners. Investment partnerships have become increasingly prevalent. They are now widely used for real estate development and management, private equity, hedge, venture capital and credit fund vehicles, and wealth management arrangements.The partnership structure (including LLCs treated as partnerships for tax purposes) offers the advantages of flow-through taxation and economic flexibility, but with those benefits come complexity and sometimes unanticipated tax results.

The 2-part series broadly explores a myriad of issues that affect investment partnerships and their partners. This course (the first part of the series) starts out by identifying different types of investment vehicles and their uses. It then explores tax issues that can affect investment partnerships and their partners. It describes considerations concerning the partnership structure (as compared with C and S corporations), common structures for investment funds, formation of investment partnerships (including contribution of property and services to those partnerships, and the “disguised sale” and “disguised service” rules). It then focuses on approaches concerning tax allocations and distributions, including rules concerning contributions of appreciated or depreciated property.

While accountants and other tax professionals will find the technical aspects of this course helpful in understanding investment partnerships, practical aspects of the course will also be valuable to investment and real estate professionals, finance and accounting executives, wealth managers, and investors (and those considering becoming investors) in investment partnerships. 

Part II of this course can be found here.

Course Key Concepts: Partnership, Limited Liability Company, Partnership Agreement, Operating Agreement, Disguised Sale, Mixing Bowl Transaction, Outside Basis, Inside Basis, Allocation, Special Allocation, Capital Account, Substantial Economic Effect, Ceiling Rule

Learning Objectives
  • Identify different forms of investment vehicles and discover advantages and disadvantages of the more prevalent forms.
  • Recognize the key parties to investment structures and their respective tax objectives.
  • Identify tax issues concerning investment partnerships.
  • Explore issues that arise in establishing and making contributions to investment partnerships.
  • Discover issues and potential distortions that can arise concerning partnership allocations and distributions.
Last updated/reviewed: March 12, 2024
20 Reviews (86 ratings)

Reviews

4
Anonymous Author
This was a lot of material to cover in 2 hours, and better definition of terms such as capital accounts, basis (internal vs external), partnership interest, etc. in the slides (and matching to terms in the test) would have been helpful. I often listen to these classes while walking or driving, then afterward look through the slides and take the test, but for this class you'd need to be taking detailed notes throughout if you're not already familiar with this topic. If anything, this confirmed for me that partnership taxation is very complex, and since I'm not a tax practitioner I will continue to consult with the tax experts at my firm if my clients need assistance in this area.
3
Anonymous Author
Felt like not exam materials were covered by the slides or the lecture. Also, some of the new important terms were introduced in a mixed bowl fashion with a fast bowl pace. Many of these introductions had run on sentence in the lecture between the definition of the term/rule and exception to the term/rule confusing me as to whether the later part of the sentence is really an exception to the rule or part of the rule. Could use some pauses. In certain long sentences the lecture could be mor specific than using words "this" and "that" multiple times. I will be taking the second part as this field is of interest to me. I hope I can follow that better.
3
Anonymous Author
The instructor was very knowledgeable, however the subject matter was highly complex and much of the intricate details of the subject matter were verbal and not contained in the slides which made it difficult to refer back to the slides for good reference.
3
Member's Profile
High level course, would advise to only take if you are already very familiar in the subject. Agree with the other responses, the questions on the exam were quite challenging and even more challenging than the information presented.
2
Member's Profile
Information was not clear once the exam and quiz questions were presented. Overall enjoyed the presentation but found it hard to know more than a general gist of the information. questions seemed hard to interpret.
2
Member's Profile
Extremely difficult. I listened to this course twice, downloaded the ppt and still ended up with only 70% after taking the exam too many times to count. There's no need to hide the content that will be on the exam.
2
Member's Profile
The CPE was tough. I passed each section of my CPA exam on the first try, and I failed this exam 4 times in a row. The test questions are complicated and the course doesn't prepare you adequately for the test.
3
Member's Profile
Not an easy course to follow. Speaker talks fast. Needed more examples. Probably should have been conducted by an accountant, rather than a lawyer.
3
Anonymous Author
This needs some more examples as I really wasn't sure on some of the exam questions despite looking at the material more than once.
4
Anonymous Author
Would have liked more of the examples in the actual slides. Some of the exam questions were really difficult.
3
Anonymous Author
Slides are example heavy and don't outline or highlight key concepts very well. Final exam is challenging.
4
Member's Profile
Good information. It would be nice if the instructions and slides better aligned with the exam information.
3
Member's Profile
The exam is very challenging if you don't have a decent understanding of Tax for partnerships....
4
Member's Profile
Support detail could be more detailed. I had to re-read it a few times to understand it.
5
Member's Profile
Very complex material for "The Basics" . One should give consideration beforehand.
5
Anonymous Author
Very informative course. Thorough, but high level enough for an introductory course
4
Member's Profile
The tax regulations are important to understand for real estate investing.
4
Anonymous Author
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4
Member's Profile
Informative content and knowledgeable instructor. Very helpful.
3
Member's Profile
the questions are too tricky. not easy to pass!!!!!!!!!!!!!!
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Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Course and Instructor Overview1:46
  Introduction to Investment Partnerships: The Basics - Part 116:38
  Comparison - Partnerships Vs. Other Vehicles14:10
  Establishing Investment Partnerships14:32
  Establishing Investment Partnerships Cont'd9:34
  Allocations and Distributions (a)17:35
  Allocations and Distributions (b)12:10
  Allocations and Distributions (c)15:02
Continuous Play
  Investment Partnerships: The Basics - Part I1:41:27
Supporting Materials
  Slides: Investment Partnerships: The Basics - Part IPDF
  Investment Partnerships: The Basics - Part I Glossary/IndexPDF
Review And Test
  REVIEW QUESTIONSquiz
 FINAL EXAMexam