S Corporations: How to Calculate Shareholder Basis WEBINAR

Overview

This program provides a detailed analysis of the calculations related to determining a shareholder’s tax basis for S corporation shares and loans, with a focus on how to use the Form 1120S, Schedule K-1 information for basis determination. An illustrative example will demonstrate how the process works. The many potential pitfalls will also be addressed.

Highlights

How to calculate basis when the entity is formed

Impact of contributed property. Explanation of the importance of shareholder loans to the entity. Comprehensive example of the mechanics of the basis determination process. How basis is impacted by distributions of corporation property. How basis is impacted by the sale and liquidation of S corporation interest. How S corporation losses impact Form 1040, Schedule E reporting. Illustration of how to get from the Schedule K-1 information to the basis calculation.

Prerequisites

Basic working knowledge of S corporation taxation.

Designed For

CPAs working in public accounting and/or working for an S Corporation.

Objectives

Understand the tax issues related to S corporation owner’s basis for shares and loans. Relate these issues to formation through operations and sale and liquidation.

Preparation

None.

Notice

None.

Fees

Credits

Code

Vendor

Fields of Study

Leader(s):

Steven Dilley

Leaders

Steven Dilley

Steve Dilley is President of Federal Tax Workshops, Inc., East Lansing, Michigan, where for the past 35 years, his organization has prepared continuing professional education materials and presented seminars for accountants and attorneys throughout the United States. He is nationally known for his knowledge of the financial, accounting, and tax problems of the closely held business. He has published numerous articles on these topics.

In addition, Steve is a Professor of Accounting at Michigan State University, East Lansing, where he teaches tax accounting. He was nominated in 2004 for the “Educator of the Year Award” and received the 2005 “Distinguished Achievement in Accounting Education Award” in Michigan. He also received the 2007 MSU Accounting and Information Systems Department Outstanding Teacher Award.

He obtained his PhD in accounting, law degree and an undergraduate accounting degree from the University of Wisconsin-Madison. He is a member of the Michigan Association of CPAs, Wisconsin Bar Association, The American Accounting Association, AICPA, American Tax Association, and Hawaii Association of Public Accountants.

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