Taxation of Partnerships 101

While partnerships are not subject to tax, there are tax implications associated with partnerships and their partners. With amendments to the income tax act we have seen the elimination of tax deferrals that were common with partnerships; and with the introduction of the specified partnership income rules the ability to access multiple small business deductions has been reduced. Even with these changes, partnership continue to be an attractive vehicle for carrying on business.

This course will review the types of partnerships, computation of the adjusted cost base, at-risk amounts, as well as, a run down of how to complete a partnership return and the reporting of partnership income by the partners. We will also discuss considerations for when drafting up partnership agreements.

More specifically, topics covered will include:

• What is a Partnership
• Types of Partnerships
• Residency of a Partnership
• Partnership Agreements
• Computation of income and allocation of income
• Computation of adjusted cost base
• The at-risk amount; what is it and why does it matter
• Tax filing requirements
• Common and not so common reporting issues
• Partnerships and the small business deduction
• Common uses of partnerships
• Transfers to Partnerships
• Dissolution of Partnerships
• Merging of Partnerships

Target Audience This webinar will be of most interest to accountants, tax practitioners, and financial planners.

Speakers:

• Brad Berry, CPA, CA, Partner at Mowbrey Gil LLP
• Jaspreet Sidhu, CPA, Tax Manager at Mowbrey Gil LLP