Surgent's Handbook for Mastering Basis, Distributions, and Loss Limitation Issues for S Corporations, LLCs, and Partnerships

Overview

The most difficult concepts to master when dealing with flow-through business entities are the basis and distribution concepts. Major error and malpractice issues occur if the CPA does not fully understand the impact of these rules. This course is designed to focus on the practical applications of these rules.

Highlights

Timely coverage of breaking tax legislation. Applicable coverage of any basis considerations within any recent tax legislation. Passthrough basis calculations required as attachments to certain individual returns. Executor’s form for disclosing basis in certain distributed property. How Schedule 179 limitations affect basis and how tax-benefit rule is applied. Basis implications of personal assets converted to business use. How to calculate basis of inherited qualified and joint tenancy property. Recognize how AAA applies or doesn’t apply to S corporations. Learn to apply the complex basis ordering rules and special elections that can have a big tax result. Learn the detailed rules of Schedule 704 for preventing the shifting of tax consequences among partners or members. Learn to calculate basis under Schedule 704 and for “at-risk” under Schedule 465. Recognize how recourse, nonrecourse, and qualified nonrecourse debt can create significantly different tax results. Review Schedule 754 step-up in basis rules.

Prerequisites

Experience in business taxation.

Designed For

Accounting and Financial Professionals who prepare both individual and flow-through business entity tax returns and need a thorough grasp of these significant issues. This course is a must for practitioners to help reduce and avoid this exposure to malpractice.

Objectives

Determine initial basis and organizing tax-free under Schedule 351 and Schedule721. Understand what affects basis and how to treat distributions. Pass the four loss limitation hurdles to deduct pass-through losses.