Update on Pass-Through Entities After Tax Reform: S Corporations, Partnerships, and Limited Liability Companies (PTTR)

Most business entity selections continue to favor pass-through entities over C corporations.  Of the pass-through entities, the IRS reports that S corporations continue to be favored over partnerships. Following the Tax Cuts and Jobs Act, tax practitioners should understand how pass-through entities interact with important developments such as the limitation on the interest deduction, the new $250,000/$500,000 loss limitation, and the Section 199A deduction. This program will discuss these tax reform developments and major issues relating to pass-through entities, such as basis, distributions and liquidations.

• Pass-through entities and the Section 199A deduction
• The four loss limitations that apply to owners of pass-through entities
• How pass-through entities are impacted by the Section 163(j) interest limitation
• When an S corporation should convert to a C corporation
• Section 754 elections in a Tax Cuts and Jobs Act environment
• Taxation of pass-through entity distributions to shareholders, partners and members
• Choice of entity considerations after the Tax Cuts and Jobs Act

• Advise clients regarding choice of entity options after the Tax Cuts and Jobs Act
• Recognize the impact of the new Section 199A deduction and the limitation on interest and losses on pass-through entities