A detailed analysis of the calculations related to determining a shareholder's tax basis for S corporation shares and loans. How to use the Form 1120S, Schedule K-1 information for basis determination.
DESIGNED FOR
CPAs working in public accounting firms and/or working for S corporations.
BENEFITS
After attending this presentation, you will be able to...
- Identify 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
HIGHLIGHTS
The major topics covered in this class include:
- Discuss the calculation of basis when the entity is formed including the impact of contributed property
- Explain the importance of shareholder loans to the entity
- Uses a comprehensive example to illustrate the mechanics of the basis determination process
- Schedule K-1 Basis and Form 7203
- Discuss how basis is impacted by distributions of corporation property
- Explain how basis is impacted by sale/or liquidation of the S corporation interest
- Discuss how S corporation losses impact Form 1040 Schedule E reporting
- Show how to get from the Schedule K-1 information to the basis calculations
COURSE LEVEL
Intermediate
PREREQUISITES
Basic working knowledge of business and S corporation taxation.
ADVANCE PREPARATION
None