S Corporations: How to Calculate Shareholder Basis (2 hours)

Overview

A detailed analysis of the calculations related to determining a shareholder's tax basis for S corporation shares and loans, with a focus on how to use Form 1120S, Schedule K-1 information for basis determination. An illustrative example demonstrates how the process works, as well as the many potential pitfalls.

*Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

Highlights

• 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
• Discuss how basis is impacted by distributions of corporation property and sale/or liquidation of the S corporation interest
• Explain how S corporation losses impact Form 1040 Schedule E reporting
• Show how to get from the Schedule K-1 information to the basis calculations

Prerequisites

Basic working knowledge of business and S corporation taxation

Designed For

CPAs working in public accounting firms and/or working for S corporations

Objectives

• Identify 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
• Identify planning opportunities and potential pitfalls

Notice

“Adding to Calendar” does not register you for this event. Please either register online by clicking “Add to Cart” or contacting OSCPA at 503-641-7200 / 800-255-1470, ext. 3. Thank you!