S Corporations: How to Calculate the Owner's Basis in S Corporation Stock

Overview

2.0 Credits
ONLINE

A detailed analysis of the calculations related to determining an S shareholder's tax basis for S corporation shares using the Form 1120S, Schedule K-1 information. An illustrative example will demonstrate how the process works, as well as the many potential pitfalls. This course qualifies for PTIN credit. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions either during or after the event.

Objectives

To provide a thorough review and update of the tax issues related to S corporation owner's basis from formation through operations and concluding with sale and/or liquidation.

Major Topics

  • Discusses the calculation of basis when the entity is formed including the impact of contributed property.
  • Explains the importance of shareholder loans to the entity.
  • Uses a comprehensive example to illustrate the mechanics of the basis determination process.
  • Discusses how basis is impacted by distributions of corporation property.
  • Explains how basis is impacted by sale and/or liquidation of the S corporation interest.
  • Shows how to get from the Schedule K-1 information to the basis calculations.

Designed For

CPAs working in public accounting firms and/or working for S corporations.

Prerequisite

None

Advanced Preparation

None
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