Basis Calculations & Distributions for Pass-Thru Entity Owners Schedule K-1 Analysis

Overview

This comprehensive case-driven training is designed to get the accountant up to speed quickly in the area of basis calculations and distribution planning for the owners of pass-thru entities (i.e., S corporations, partnerships, and limited liability companies (LLCs)). The cornerstone of this course is the line-by-line analysis of the Schedule K-1s and how it affects the basis calculations. 

**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

Highlights

• Detailed coverage of any new legislation affecting basis computations and distributions and changes to the schedule K-1s (including the NEW Form 7203 – S Corporation Shareholder Stock and Debt Basis Limitations)
• Line-by-line analysis of the Schedule K-1s to determine how the items affect a S shareholder’s stock and debt basis and a partner/member’s outside basis and where the items get reported on Federal individual income tax return
• The three loss and deduction limitations on the owner’s individual income tax return (i.e. basis, at-risk and other Form 1040 limitations)
• How cash or non-cash distributions affect the basis calculations and whether or not they are taxable to the owners
• Compare the tax treatment of the sale of a shareholder’s stock in a S corporation and a partner’s interest in a partnership
• What constitutes debt basis for a S corporation shareholder under the final regulations
• The tax ramifications of repaying loans to S corporation shareholders and on open account debt
• How recourse and non-recourse debt effect a partner or member’s basis calculations and amount at-risk

Prerequisites

Basic understanding of individual income taxation

Designed For

Tax professionals that need an in-depth training course on basis calculations and distributions rules for S-Corporations, partnerships, LLCs and their owners

Objectives

• List the 3 main reasons for calculating a shareholder’s basis in a S corporation and partner/member’s basis in a partnership/LLC
• Calculate the stock and debt basis for S corporation shareholders
• Calculate the basis for partners and members of a LLC
• Calculate losses allowed from at-risk activities
• Review the Form 1120S and Form 1065 Schedule K-1s to determine how the line items affect basis calculations and get reported on the individual owner’s Form 104

Preparation

None

Notice

This course is offered by a 3rd party vendor and will not be accessible in the My CPE Tracker section of the ISCPA website. Course access information will be emailed directly to you by Accounting Continuing Professional Education Network (ACPEN).