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.
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.
Basic working knowledge of business and S corporation taxation.
CPAs working in public accounting firms and/or working for S corporations.
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.
Steven Dilley, Federal Tax Workshops Inc
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.
Non-Member Price $109.00
Member Price $89.00