S Corporations: How to Calculate Shareholder Basis

Overview

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.

Learning 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

Program Content:

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

Who should attend: CPAs working in public accounting firms and/or working for S corporations.

Developed By: Federal Tax Workshops, Inc

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

CPE Credit: 2.0

Field of Study: Taxes (2 CPE)

Prerequisites: Basic working knowledge of S corporation taxation.

Advanced Preparation: None

Format: QAS Self Study

Highlights

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.

Designed For

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

Objectives

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