Description

Doing business in partnership: Tax consequences of the death of a partner

The taxation of partnership rules can seem straight forward on the surface, but they can be complicated to apply, particularly when a partner dies, or the partnership is a husband and wife and they separate. In the current environment it may be prudent to revisit whether a partnership that gives rise to joint and several liability is the best vehicle for a business. With the impact of COVID the reality is that businesses are failing. Planning for the cessation of a partnership is as important as planning its inception, if not more so. Will there be a dissolution or a disposal? Will there be relief?

This webinar will provide a refresher on the tax rules applying on the death of an individual and will look at the following topics:

• What specific tax rules need to be considered specifically relating to the death of a partner?
• Will the death of the partner give rise to a dissolution of the partnership?
• If the partners are married, in a civil union or a de facto relationship, what impact does that have?
• What is the taxation outcome for the partners and the partnership on the death of a partner?
• What are the GST considerations?

This webinar will be a mix of the technical rules that apply and the use of practical examples to highlight the interplay of some of the relevant tax rules that need to be worked through to assess the tax outcomes for all concerned.

ORIGINAL BROADCAST DATE

12 May 2022

LEARNING OUTCOMES

• Identify the key issues to be addressed upon the death of a partner for both the remaining partners and the deceased.
• Provide advice to clients in relation to the taxation issues arising from the death of a partner.
• Understand the steps to be worked through to apply various taxation rules to the dissolution of a partnership or the disposal of a partner’s interest and the differences between the scenarios.

SUITED TO

Accountants and lawyers who act for partners or partnerships and advise on partnership issues and agreements.
Accountants, advisors and lawyers who advise on Wills and who manage or administer estates.

PRESENTER

Nola Crafar, Senior Manager – Tax Advisory, Findex (presenting on behalf of TEO).