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Shareholder and Partnership Basis Issues

  • AFSP
  • CPA (US)
  • EA
  • Tax Preparer

Published: December, 2021

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  • Course Description
  • Course Qualification
  • Presenter
  • Faq

Course Description

Overview

  • What is Basis?
    10 mins
  • Amount At-Risk
    13 mins
  • Partnership Basis
    21 mins
  • Partnership Debts
    27 mins
  • S-Corporation Basis and Debt
    30 mins
  • Shareholder Loans
    36 mins
  • Loan repayments
    40 mins
  • Schedule E, Page 2
    43 mins
  • PPP and Basis
    52 mins

Course Description

The basis of a partner in a partnership and of an S Corp shareholder are similar, and the basis for each type of business serves the same purposes. When deductions or losses are passed through to either a partner or shareholder, the calculated basis puts a limit on tax deductions.

Basis in a flow-through business is key to deducting losses and calculating gains or losses on disposition. Certain losses deductible by partners in partnerships are not deductible by S corporation shareholders.

Shareholders track their basis using accumulated adjustment accounts, while partners use capital accounts. Both are increased by flow-through income, contributions of cash or property, and reduced by distributions and deductions. Similarly, both owners are also subject to at-risk rules before loss deductions are allowed.

Planning techniques are available to increase the basis in these flow-through entities to deduct current year losses. Ordering rules for loss deductions and restoration of basis are complex.

Tax practitioners need to understand the similarities and differences in basis calculations for owners of both partnerships and S corporations to report annual flow-through income and deductions and ultimately the gain or loss on the disposition of these entities.

This CPE/CE tax course will cover all a practitioner needs to know about calculating the basis for shareholders of S-corporations and partners in a partnership. In particular, it will cover new items such as the new Form 7203 from the IRS, for tracking the basis of S-Corp shareholders.

In this CPE/CE course speaker will also cover the differences in basis tracking between the 2 types of entities and discusses best practices for practitioners.

Answers to the following major questions are provided in this CPE/CE tax webinar :

  • What is the basis?
  • What are the simple examples to set the stage?
  • What is a partnership basis?
  • What are the partnership amounts at risk?
  • What is an S-corporation basis?
  • What are S-corporation shareholder loans?
  • How to track basis -- new Form 7203?

Learning Objectives

  • To define the term basis.
  • To discuss the components of the basis for a partner.
  • To investigate the components of the basis for an S-corporation shareholder.
  • To explain the at-risk rules.
  • To define how debt basis works.
  • To discuss how to track shareholder loans and their impact on a basis.
  • To analyze how to use Form 7203.

Recommended For

  • This IRS Approved CE course is recommended for AFSP, CPA (US), EA, CTEC, Tax Professionals, and Other Professionals who want to understand shareholder and partnership basis issues to support their clients with updated tax services.

Who Should Attend?

  • Annual Filing Season Program
  • Bookkeepers & Accountants & Tax Preparers
  • Certified Public Accountant
  • CPA (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • Maryland Tax Preparers
  • Oregon Tax Preparers
  • Tax Accountant (Industry)
  • Tax Attorney
  • Tax Director (Industry)
  • Tax Firm
  • Tax Managers
  • Tax Practitioners
  • Tax Preparer
  • Tax Professionals
  • Tax Pros
  • Young CPA

Course Qualification

Webinar Qualifies For

  • 1 CE Credit of Taxes for Tax Professionals (Approval No. GEHNZ-T-00785-21-S)
  • 1 CE Credit of Taxes for Enrolled Agents (EA) (Approval No. GEHNZ-T-00785-21-S)
  • 1 CPE Credit of Taxes for Certified Public Accountants (CPA-US)
  • 1 CE Credit of Federal Tax Related Matters for California Registered Tax Preparers(CRTP) (Approval No. 6273-CE-0728)
  • 1 CE Credit of Taxes for Annual Filing Season Program (AFSP)

Presenter

About Presenter

Jason Dinesen, EA, LPA

President Dinesen Tax & Accounting, P.C.

Jason Dinesen (LPA, EA) is an entrepreneur, tax expert, and CPE Presenter. Dinesen brings over 15 years of experience helping individuals and businesses with accounting, bookkeeping, tax preparation, and business advisory in various industries. 

Dinesen is a regular CPE Presenter at myCPE. He has coached more than 200k+ accounting, taxes, and HR professionals on various topics of accounting, individual taxation, corporate taxation, and professional ethics.  Jason has developed a strong following within the professional community for tax-related subjects. 

Dinesen is known for sharp tax interpretations, and he quickly brings his analysis of the latest tax updates and IRS guidance to the professional community.

About Company

Dinesen Tax & Accounting, P.C.

www.dinesentax.com

Unlike some other accounting firms, when Dinesen Tax & Accounting, P.C. says we offer personal service, we mean it. When you come to us with your tax preparation needs, you’ll deal directly with our owner and president, Jason Dinesen. We don’t put administrative staff in the middle of you and our tax expert. That means you’ll always have first-hand knowledge of where things stand, and important information won’t slip through the cracks. We welcome all clients, but especially individuals who want the benefits of a long-term relationship with an accounting firm capable of handling anything that might come along with their taxes. We give all our clients the time, attention, and convenience they should expect. If you have a challenging professional or personal schedule, Jason will accommodate you by meeting whenever – and wherever – works best for you.

Faq

FAQs content

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