This comprehensive case-driven training is designed to get the accountant up to speed quickly in the area of basis calculations and distribution planning for the owners of pass-thru entities (i.e., S corporations, partnerships, and limited liability companies (LLCs)). The cornerstone of this course is the line-by-line analysis of the Schedule K-1s and how it affects the basis calculations.
Learning Objectives
*List the 3 main reasons for calculating a shareholder's basis in a S corporation and partner/member's basis in a partnership/LLC *Calculate the stock and debt basis for S corporation shareholders *Calculate the basis for partners and members of a LLC *Calculate losses allowed from at-risk activities *Review the Form 1120S and Form 1065 Schedule K-1s to determine how the line items affect basis? calculations and get reported on the individual owner's Form 1040
Major Topics
*Detailed coverage of the Tax Cuts & Jobs Act (TCJA) affecting basis computations and distributions *Line-by-line analysis of the Schedule K-1s to determine how the items affect a S shareholder's stock and debt basis and a partner/member's outside basis and where the items get reported on Federal individual income tax return *The three loss and deduction limitations on the owner's individual income tax return (i.e. basis, at-risk and ?other Form 1040 limitations) *How cash or non-cash distributions affect the basis calculations and whether or not they are taxable to the? owners *Compare the tax treatment of the sale of a shareholder's stock in a S corporation and a partner's interest? in a partnership *What constitutes debt basis for a S corporation shareholder under the final regulations *The tax ramifications of repaying loans to S corporation shareholders and on open account debt *How recourse and non-recourse debt effect a partner or member's basis calculations and amount at-risk.
