Basics of Form 6198 vs 7203 For Pass-Through Losses & Deductions
Date: Monday, December 14, 2026
Instructor: Jane Ryder
| Begin Time: |
11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
|
NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Correctly applying loss limitation rules for pass-through entities is essential to avoiding disallowed deductions, IRS notices, and compliance exposure. This course provides a practical, foundational comparison of Form 6198 and Form 7203, explaining when each form applies, how they interact, and how they collectively limit Schedule K-1 losses and deductions from partnerships and S corporations.
Participants will walk through at-risk and basis limitation rules, common preparation errors, and calculation differences between Form 6198 and Form 7203. The course emphasizes real-world application, helping tax professionals understand how these forms function within tax software, how suspended losses are tracked and carried forward, and how to ensure accurate reporting of allowable deductions on individual returns.
Who Should Attend
This course is designed for CPAs, enrolled agents, and tax professionals who prepare or review individual returns involving partnership or S corporation losses.
Topics Covered
- Overview of pass-through entity loss limitation rules
- Schedule K-1 loss and deduction reporting
- At-risk limitation rules under Form 6198
- Stock and debt basis limitations under Form 7203
- Interaction between Form 6198 and Form 7203
- Tracking and carrying forward suspended pass-through losses
- Common compliance errors and IRS risk areas
Learning Objectives
- Identify when Form 6198 applies to partnership and S corporation Schedule K-1 losses
- Determine when Form 7203 is required for S corporation shareholders
- Differentiate between at-risk limitations and stock or debt basis limitations
- Resolve calculation differences between Form 6198 and Form 7203
- Correctly prepare and report Form 6198 for at-risk loss limitations
- Correctly prepare and report Form 7203 to determine allowable S corporation losses
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
