Description: A detailed analysis of the calculations related to determining an S shareholder’s tax basis for S corporation shares and loans. How to use the Form 1120S, Schedule K-1 information for basis determination. An illustrative example demonstrates how the process works, as well as the many potential pitfalls.
Learning Objectives: To provide a thorough review and update of the tax issues related to S corporation owner’s basis for shares and loans from formation through operations and concluding with sale and/or liquidation.
- Calculation of basis when the entity is formed including the impact of contributed property.
- Explains the importance of shareholder loans to the entity.
- Illustration of the mechanics of the basis determination process.
- How basis is impacted by distributions of corporation property and by sale/or liquidation of the S corporation interest.
- How S corporation losses impact Form 1040 Schedule E reporting.
- Demonstrate how to get from the Schedule K-1 information to the basis calculations.
- New Form 7203
Who should attend: CPAs working in public accounting firms and/or working for S corporations.
Program Level: Intermediate
Developed By: Federal Tax Workshops, Inc
Instructor: Steven C. Dilley, CPA, JD, PhD
CPE Credit: 2.5
Note: This course qualifies for PTIN credit.
Field of Study: Taxation
Prerequisites: Basic working knoweldge of S corporation basis.
Advanced Preparation: None
Steven C. Dilley, CPA, JD, PhD
Steve is President of Federal Tax Workshops, Inc., where for over 40 years, he has developed and presented continuing education seminars and webinars on tax, accounting and ethics topics for accountants and attorneys throughout the country. He is nationally known for his knowledge of the financial, accounting, and tax problems of the closely held business and has published numerous articles on these topics.
In addition, Steve is a Professor Emeritus of Accounting at Michigan State University, East Lansing, where he taught tax accounting. He has been received the “Distinguished Achievement in Accounting Education Award” in Michigan, as well as the MSU Accounting and Information Systems Department Outstanding Teacher Award.