July 20, 2022


Webinar


8 Total CPE Credits

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Pass-Through Owners' Basis and Distribution Rules: Comprehensive-Forms 1065 and 1120S

Learning Objectives

  • Calculate the stock and debt basis of S Corp shareholders.
  • Calculate the basis for partners and members of a partnership
  • Identify the three reasons for calculating a pass-through owners' basis.
  • Understand the new IRS capital account disclosure requirements on Schedule K-1.
  • Calculate pass-through losses allowed to an owner by applying the four-loss limitations (basis, at-risk, passive, and excess business loss limitations).
  • Determine the tax consequences of operating and liquidating distributions out of partnerships and S-corporations under multiple scenarios with several examples.
  • Determine if payment from a pass-through entity is treated as a distribution for tax purposes.
  • Calculate the tax gain or loss on the sale of a owners' interest in a pass-through entity.

Major Topics

  • Understand the four loss limitation rules applied on the owner's individual income tax return (I.e., basis, at-risk, passive, and excess business loss limitations).
  • Determine how to calculate an owners' initial tax basis of his pass-through entity
  • Learn how to correctly make annual adjustments to a pass-through owners' tax basis.
  • Discover how cash or non-cash distributions from a pass-through entity affect the basis calculations and whether they are taxable to the owners.
  • Compare the tax treatment of the sale of a shareholder's stock in an S corporation and a partner's interest in a partnership.
  • Learn what constitutes a debt basis for an S Corp shareholder.
  • Learn the tax ramifications of repaying loans to S Corp shareholders.
  • Learn how recourse and non-recourse debt is allocated to a partner and learn how this allocation affects a partner or member's basis calculations and amount at-risk.
  • Learn how to interpret a Schedule K-1 for items related to the calculation of basis.

CPE Credits Available

8
Total CPE
8
Taxes

Things to Know About This Course

Prerequisites

Basic understanding of individual income taxation

Advanced Preparation

None

Intended Audience

Tax Professionals.

Provider

California Society of CPAs

This event has ended.