A detailed analysis of the calculations related to determining an S shareholder's tax basis for S corporation shares and loans. Learn 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...
- Distinguish 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 covered in this class include:
- Analyzes the calculation of basis when the entity is formed including the impact of contributed property
- Determine the importance of shareholder loans to the entity
- Uses a comprehensive example to illustrate the mechanics of the basis determination process
- Calculate how basis is impacted by distributions of corporation property
- Identify how basis is impacted by sale/or liquidation of the S corporation interest
- Determine how to get from the Schedule K-1 information to the basis calculations
