Partnership Tax Services

We help partnership-based businesses find opportunity in the complex rules governing their structures.  

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Navigating the complexities of partnership tax 

With great flexibility comes great complexity. 

Business organizations treated as partnerships for tax purposes typically have significant flexibility in sharing economic results among the owners. This flexibility, however, often comes with a high degree of complexity.  

With continuing changes resulting from legislation, regulations, case law and administrative guidance, properly operating a business in partnership form becomes daunting. Maintaining and optimizing tax strategies in this rapidly evolving partnership tax landscape requires focused insight and practical experience.  

Our dedicated National Partnership Taxation professionals bring this needed depth of knowledge to help clients navigate these ever-changing rules, understand new developments and design structures that meet the economic arrangements between partners in a tax-efficient manner.  

Enhancing our ability to deliver timely data analytics and reduce compliance risk, we rely on our proprietary technology, BDO PCASO (Partnership Capital Account Solution). Powered by BDO PCASO, our Partnership Portrait services deliver relevant, real-time tax and financial data, helping you make critical business and investment decisions.  

As the complexity of partnership tax rules increase, so does the demand for accurate and timely information. BDO’s National Partnership Taxation professionals stand ready to help you manage risks and identify opportunities.  

Capabilities

BDO PCASO is our proprietary software providing customized partnership capital account maintenance, income allocation, and transaction planning services. Leveraging data maintained with BDO PCASO, our Partnership Portrait services provide real-time actual and projected financial data. Key benefits of these services include: 

  • Accurate partnership compliance with available audit support data 
  • Automated delivery of partnership Schedule K-1 
  • Exit planning information 

Our National Partnership Taxation professionals leverage their deep technical experience to help our clients maximize the benefits of operating as a partnership. Our team provides the following partnership taxation services:  

  • Transaction structuring and support, including historic capital account reviews 
  • Advising on critical partnership formation decisions such as evaluating section 704(c) methods, projected liability allocations, future income/loss allocations, and application of the disguised sale rules 
  • Partnership initial public offering transactions including structuring Up-C and Up-SPAC transactions 
  • Structuring and evaluating proposed partner exit transactions 

Our team regularly assists clients with partnership tax computations, including:  

  • Maintenance of capital account schedules, tax basis and Section 704(b) book basis variances 
  • Partnership liability allocations  
  • Tracking of partnership minimum gain, allocation of partner and partnership nonrecourse deductions, and minimum gain chargeback calculations 
  • Calculations of basis adjustments, gain/loss recognition for partnership sales and ordinary income recognition for a partnership interest transaction 
  • Section 704(c) modeling and computational services to support the allocation of tax items for property contributed with a built-in-gain or loss 
  • Tax Receivable Agreement modeling following an Up-C or Up-SPAC public offering 

BDO’s Partnership Capital Accounts Solution (PCASO)

BDO PCASO improves overall efficiency and workflow, streamlining income and disclosure allocations across complex and multi-tiered partnership organizational structures and by individual partners. PCASO technology integrates the management of economic and tax basis capital with the partnership tax reporting process, providing partnerships and partners with key insights and data to make more informed decisions. 

 

Partnership Portrait

Looking for a summary of key partner information in an easy-to-understand dashboard? BDO’s Partnership Portrait provides a customizable snapshot of the value of your investment. Track your KPIs more efficiently with Partnership Portrait. 

Profit and loss allocations icon

Profit & loss allocations

Rate of return icon

Rate of return

Economic interest based ownership icon

Economic interest-based ownership

Tax basis ownership icon

Tax-basis ownership

Distributed to paid ratio icon

Distributed to Paid (DPI) ratio

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Other customizable investment-defined analytics

Federal Tax Matters Insights

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