This program discusses, in a practical way, how an S corporation shareholder calculates their stock and loan basis on Form 7203. Form 7203 is the IRS Form on which a shareholder is sometimes required to calculate their stock and loan basis. This topic is particularly important when an S corporation has a loss and the shareholders wish to know whether they are entitled to fully utilize the loss that has been allocated to them against their other income.
This course features a live instructor and has been specifically designed for the NJCPA.
DESIGNED FOR
Any tax practitioner with S corporations or S corporation shareholders as clients.
BENEFITS
- Calculate an S corporation shareholder's basis in his or her S corporation shares on Form 7203
- Understand and apply the S corporation shareholder loan basis rules
HIGHLIGHTS
- Introduction to Form 7203
- Introduction to the calculation of stock basis
- Introduction to the calculation of loan basis
- Taxable and nontaxable S corporation distributions to shareholders
- The election to reduce basis by deductible losses and expenses before reducing basis by nondeductible expenses
PREREQUISITES
Basic understanding of tax rules relating to S corporations and S corporation shareholders
ADVANCE PREPARATION
None