S Corporations: Calculating Shareholder Basis

Overview

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. An illustrative example demonstrates how the process works, as well as the many potential pitfalls. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics that will be covered in this course 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

Prerequisites

Basic knowledge of S Corporations and taxes

Designed For

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

Objectives

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

Preparation

None