S Corporations: How to Calculate the Shareholder's Basis

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 demonstrates 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 during the event.

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

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.

• 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/or liquidation of the S corporation interest.
  
• Shows how to get from the Schedule K-1 information to the basis calculations.
  

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