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.
Learning 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
Major Topics
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
