Shareholder Basis
This webinar will look and the in's and out's of basis for S Corps and partnerships. Along with the importance of properly calculating basis. We will start with S Corps and determine how to calculate the basis in an S Corp interest, along with ordering elections for properly calculating basis. Then we will look into partnerships and after determining the difference between inside and outside basis, we will look at how basis is calculated for a partnership in order to determine things like the amount of loss that is deductible or if any distributions are taxed.Areas CoveredUnderstand the importance of Basis calculationsCalculate outside basis for a partnershipCalculate stock and debt basis for an S CorpUnderstand the difference between inside and outside basis for partnershipsDetermine when calculating basis is necessaryWho Should AttendTax preparersWhy Should You AttendShareholder basis is a topic the IRS is looking more intensely at. For S Corps, the IRS is not requiring Form 7203 to be filed with the shareholder’s returns to prove basis. Basis is required in order to deduct losses, make a tax free distribution, sell the stock in an S Corp or repay a shareholder loan. If practitioners are doing their due diligence, then they will need to know shareholder basis.In addition, C Corp basis functions a little differently but is still required in order to determine gain and loss on the sale of a business (which we are seeing more people sell their businesses now)
Single
This webinar will look and the in's and out's of basis for S Corps and partnerships. Along with the importance of properly calculating basis. We will start with S Corps and determine how to calculate the basis in an S Corp interest, along with ordering elections for properly calculating basis. Then we will look into partnerships and after determining the difference between inside and outside basis, we will look at how basis is calculated for a partnership in order to determine things like the amount of loss that is deductible or if any distributions are taxed.
Areas Covered
- Understand the importance of Basis calculations
- Calculate outside basis for a partnership
- Calculate stock and debt basis for an S Corp
- Understand the difference between inside and outside basis for partnerships
- Determine when calculating basis is necessary
Who Should Attend
- Tax preparers
Why Should You Attend
Shareholder basis is a topic the IRS is looking more intensely at. For S Corps, the IRS is not requiring Form 7203 to be filed with the shareholder’s returns to prove basis. Basis is required in order to deduct losses, make a tax free distribution, sell the stock in an S Corp or repay a shareholder loan. If practitioners are doing their due diligence, then they will need to know shareholder basis.
In addition, C Corp basis functions a little differently but is still required in order to determine gain and loss on the sale of a business (which we are seeing more people sell their businesses now)