Surgent's Handbook for Mastering Basis, Distributions, and Loss Limitation Issues for S Corporations, LLCs, and Partnerships

The most difficult concepts to master when dealing with flow-through business entities are the basis and distribution concepts. Major error and mal...

11/5/2021 8am - 4pm | Online | Surgent

$259.00

CPE Categories: Taxation (8 CPE)

Description

The most difficult concepts to master when dealing with flow-through business entities are the basis and distribution concepts. Major error and malpractice issues occur if the CPA does not fully understand the impact of these rules. This course is designed to focus on the practical applications of these rules.

Target Audience

CPAs who prepare both individual and flow-through business entity tax returns and need a thorough grasp of these significant issues. This course is a must for practitioners to help reduce and avoid this exposure to malpractice.

Course Objectives

Determine initial basis and organizing tax-free under §351 and §721
Understand what affects basis and how to treat distributions
Pass the four loss limitation hurdles to deduct pass-through losses

Subjects

Applicable coverage of any basis considerations within any recent tax legislation enacted before the presentation
Discuss new pass-through basis calculations required as attachments to certain individual returns
Executor’s new IRS form for disclosing basis in certain distributed property; what about the basis of a property distribution from a trust?
How §179 limitations affect basis and how tax-benefit rule is applied
Basis implications of personal assets converted to business use
How to calculate basis of inherited and joint tenancy property
Excess business losses and the new NOL rules, as updated by the CARES and Tax Relief Acts of 2020
The new tax basis reporting requirement for partnerships and 2020 presentation changes made to Forms 1065 and 1120-S Schedule K-1
S corporations: Beware of final IRS regulations regarding “open debt”; determine how to calculate basis; worksheets are included; understand the effect of stock basis and debt basis and IRS’s recent focus on “at-risk basis” for shareholders; recognize how AAA applies or doesn’t apply to S corporations; learn to apply the complex basis ordering rules and special elections that can have a big tax result; discuss loss limitation rules in depth; when you can have a taxable dividend in an S corporation; understand distributions of cash and property; understand the post-termination transition rules, and temporary new TCJA post-termination rules for eligible corporations, which will be important for S Corps returning to C corps
LLCs and partnerships: Learn the detailed rules of §704 for preventing the shifting of tax consequences among partners or members; learn to calculate basis under §704 & for “at-risk” under §465; recognize how recourse, nonrecourse, and qualified nonrecourse debt can create significantly different tax results; learn the difference between basis and “at-risk basis”; review §754 step-up in basis rules; the economic effect equivalence test or “dumb-but-lucky” rule; learn to apply the complex rules of distribution of cash vs. property, TCJA cleans up the basis treatment of charitable contributions and foreign taxes paid

Prerequisites

Experience in business taxation