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Understanding Basis For Pass Through Entities

Understanding Basis For Pass Through Entities

1 Credit


Subject Area


Webinar Qualifies For

1 CPE credit of Taxes for all CPAs

1 CE credit of Federal Tax for Enrolled Agents ( IRS Approved : GEHNZ ) (Approval No. GEHNZ-T-00601-21-S)

1 CE credit of Federal Tax Subjects for California Tax Professionals (CTEC Approved - 6273) (Approval No. 6273-CE-0575)

1 CE credit of Annual Filing Season program (AFSP)( IRS Approved : GEHNZ )

1 CE credit of Federal Tax for Oregon Tax Preparers (Approval No. GEHNZ-T-00601-21-S)

1 CE credit of Federal Tax for Maryland Tax Preparers (Approval No. GEHNZ-T-00601-21-S)

1 General Educational credit for Tax Professionals / Bookkeepers / Accountants

You need to register for the webinar to watch the video.

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Before starting this self study program, please go through the instructional document.

The topic is also scheduled as live webinar on the following dates

Oct 28, 2021 | 11:30 AM EDT Register


  • Three reasons to calculate basis
    5 mins
  • Stock Basis Calculation
    9 mins
  • Debt Basis Calculation
    16 mins
  • Partneships
    26 mins
  • Outside Basis
    29 mins

Course Description

Most US businesses are not subject to the corporate income tax; rather, their profits flow through to owners or members and are taxed under the individual income tax. Pass-through businesses include sole proprietorships, partnerships, limited liability companies, and S-corporations. The share of business activity represented by pass-through entities has been rising for several decades.

The IRS is scrutinizing, more closely than ever, the basis owners have and the transactions for which the computation of basis is required. This comprehensive CPE/CE course is designed to bring you up to speed quickly in the area of basis calculations.

This online continuing education will look at the ins and outs of basis for S Corps and partnerships along with the importance of properly calculating basis. In this online CPE/CE course we will start with S Corps and determine how to calculate the basis in an S-Corp interest, along with ordering elections for properly calculating basis. Then we will look into partnerships and after determining the difference between inside and outside basis, we will look at how basis is calculated for a partnership in order to determine things like the amount of loss that is deductible or if any distributions are taxed.

Major topics covered in this online CPE/CE webinar:

  • The four loss and deduction limitations on the owner’s individual income tax return (i.e., basis, at-risk, passive and excess business loss limitations).
  • How cash or non-cash distributions affect the basis calculations and whether or not they are taxable to the owners.
  • Compare the tax treatment of the sale of a shareholder’s stock in a S corporation and a partner’s interest in a partnership.
  • What constitutes debt basis for a S-Corp shareholder under the final regulations.
  • How recourse and non-recourse debt affect a partner or member’s basis calculations and amount at-risk.

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Learning Objectives

  • To describe the importance of Basis calculations
  • To calculate outside basis for a partnership
  • To calculate stock and debt basis for an S Corp
  • To elaborate the difference between inside and outside basis for partnerships
  • To determine when calculating basis is necessary

Who Should Attend?

  • California Registered Tax Professional
  • CPA (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • Enrolled Agent
  • Maryland Tax Preparers
  • Oregon Tax Preparers
  • Tax Accountant (Industry)
  • Tax Attorney
  • Tax Director (Industry)
  • Tax Firm
  • Tax Managers
  • Tax Practitioners
  • Tax Preparer
  • Tax Pros
  • Young CPA