This program discusses, in a practical way, how an S corporation shareholder calculates his or her 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.
Any tax practitioner with S corporations or S corporation shareholders as clients.
- How to calculate an S corporation shareholder's basis in his or her S corporation shares
- Understand and apply the S corporation shareholder loan basis rules
- How to determine S corporation shareholder stock and loan basis
- The positive and negative basis adjustments S corporation shareholders make--and the order in which they are made
- The election to reduce basis by deductible losses and expenses before reducing basis by nondeductible expenses
- Shareholder loan basis rules
Basic understanding of tax rules relating to S corporations and S corporation shareholders.