As part of a continuing series on Fall 2017 semester courses that relate to innovation and business law, this post spotlights Taxation of Partnerships.

“Students often have the misconception that the corporate form is for businesses, and the partnership form is for ‘mom and pop’ shops, but partnerships & LLCs are much more prevalent today than any other business entity because they’re only taxed once,” observed Professor Grewal in a recent interview. Taxation of Partnerships is an excellent course for any student interested in working in business law to take because the course covers the tax treatment of both partnerships and LLCs.

“Students in the course will get a close understanding of the tax consequences of a partnership from life to death,” Professor Grewal explained. The course covers the organization, operation, and liquidation of a partnership. Although the course is heavily statute-based, students will also engage in problem-based discussion. “It’s a challenging course,” Professor Grewal noted, “but most of the material builds on earlier material in the course. If you understand the last assignment, that means you understood every other assignment before that.”

After taking the course, students should come away with an understanding of the business and tax considerations involved in partnership operations. Mitchell Plimmer, a 3L, noted that while “we could not possibly learn the tax consequences of every possible partnership transaction, the class gave us the tools to address any possible partnership tax question.” Plimmer also benefitted from learning to navigate and use specific chapters of the tax code. Plimmer left the course with a greater appreciation for the complexity of taxation of partnerships. “Professor Grewal did a great job of making sure we mastered important partnership taxation principles while still addressing areas of the material that we found particularly interesting or difficult,” Plimmer explained.

Basic Federal Income Taxation is a prerequisite for the course.

​Amanda Marincic -- March 24, 2017

Course Description

This course is a detailed introduction to the federal tax treatment of the most common business entities in use in the United States today --partnerships and limited liability companies. The relevant tax provisions are found primarily in Subchapter K of the Internal Revenue Code. Topics to be studied in depth include: the classification of entities as partnerships for federal tax purposes; formation of the partnership and subsequent contributions to partnership capital; the flow-through tax treatment of partnership operations; tax-sensitive allocations of items of partnership income, deduction, credit and loss; partnership distributions and related tax-sheltering strategies, the liquidation or sale of partnership interests; and the death or retirement of partners. The course also compares the tax treatment of partnerships with that of S corporations.  Prerequisite: Basic Federal Income Taxation.

​Schedule Information

Tuesday -- 3:00-5:00