Description

A detailed analysis of the calculations related to determining an S shareholder's tax basis for S corporation shares and loans. Learn how to use the Form 1120S, Schedule K-1 information for basis determination. An illustrative example demonstrates how the process works, as well as the many potential pitfalls. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Presented by Federal Tax Workshops, Inc

Instructor: Steven C. Dilley, CPA, JD, PhD

Target Audience

CPAs working in public accounting firms and/or working for S corporations.

Course Objectives

After attending this presentation you will be able to...

• Distinguish the tax issues related to S corporation owner's basis for shares and loans from formation through operations
• Determine strategies of a sale and/or liquidation
• Analyze how S corporation losses impact Form 1040 Schedule E-reporting

Subjects

The major topics covered in this class include:

• Analyzes the calculation of basis when the entity is formed including the impact of contributed property
• Determine the importance of shareholder loans to the entity
• Uses a comprehensive example to illustrate the mechanics of the basis determination process
• Calculate how basis is impacted by distributions of corporation property
• Identify how basis is impacted by sale/or liquidation of the S corporation interest
• Determine how to get from the Schedule K-1 information to the basis calculations

Prerequisites

Basic working knowledge of S corporation taxation.