A number of businesses utilize "pass-through" entities for a variety of reasons, including financing, investing and tax planning. Partnerships are a very powerful business tool, as they have some flexibility regarding how they allocate income and distribute cash among the partners. They are used in all industries and are used extensively by international businesses; in fact, over 70% of corporations in the United States have investments in "pass-through entities." In addition to in-depth coverage of the tax rules regarding the operations of a flow-through entity, the course will also spend time reviewing partnership agreements, including some examples of provisions that have unintended consequences. While the focus of the class is on federal income tax law, many planning concepts will be discussed, including in-depth analysis of the economics behind these transactions. Fall term. Required for all Tax Consulting Track students.
Note: This course will benefit any student who plans to work on large corporate audits. Many large (and especially multinational) corporations use flow-through entities extensively in their organization structure. This is largely driven by tax considerations. Understanding the taxation of flow-through entities will enable you to better understand the benefits and limitations of including these types of entities within corporate structures.