Overview
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Stock basis calculation
16 mins
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Debt basis calculation
24 mins
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Order is important!
26 mins
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What is Form 7203
37 mins
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Course Description
This CE/CPE webinar on taxes will look and the in's and out's of the basis for S Corps and partnerships. Along with the importance of properly calculating the basis.
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. Entity-level debt and personal guarantees are treated differently for these otherwise similar entities.
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.
The speaker of this CE/CPE course Nick Preusch will start with S Corps and determine how to calculate the basis in an S Corp interest, along with ordering elections for properly calculating the basis.
Then he will look into partnerships and after determining the difference between inside and outside basis, how basis is calculated for a partnership to determine things like the amount of loss that is deductible or if any distributions are taxed.
Learning Objectives
- To discuss the importance of basis calculations.
- To analyze how to calculate outside basis for a partnership.
- To analyze how to calculate stock and debt basis for an S Corp.
- To explain the difference between the inside and outside basis for partnerships.
- To inspect the situations where calculating the basis becomes necessary.
Recommended For
- This IRS-Approved CE/CPE course is recommended for CPA, EA, AFSP, Tax Professionals, CVA, CBA/MCBA, Tax Directors, Tax Practitioners, and Tax Attorneys interested in learning everything about the in's and out's of the basis for S Corps and partnerships.
Who Should Attend?
- Annual Filing Season Program
- Bookkeepers & Accountants & Tax Preparers
- California Registered Tax Professional
- Certified Management Accountant (CMA)
- Certified Public Accountant (CPA)
- CPA (Industry)
- CPA - Mid Size Firm
- CPA - Small Firm
- Enrolled Agent
- Maryland Tax Preparers
- Oregon Tax Preparers
- Young CPA
