Description

This program discusses, in a practical way, how an S corporation shareholder calculates their stock and loan basis on Form 7203. Form 7203 is the IRS Form on which a shareholder is sometimes required to calculate their stock and loan basis. This topic is particularly important when an S corporation has a loss and the shareholders wish to know whether they are entitled to fully utilize the loss that has been allocated to them against their other income.

Instructor: Mike Tucker, Ph.D., LL.M., J.D., CPA

Target Audience

Any tax practitioner with S corporations or S corporation shareholders as clients

Course Objectives

Calculate an S corporation shareholder's basis in his or her S corporation shares on Form 7203

Understand and apply the S corporation shareholder loan basis rules

Subjects

Introduction to Form 7203

Introduction to the calculation of stock basis

Introduction to the calculation of loan basis

Taxable and nontaxable S corporation distributions to shareholders

The election to reduce basis by deductible losses and expenses before reducing basis by nondeductible expenses

Prerequisites

Basic understanding of tax rules relating to S corporations and S corporation shareholders