Basis Basics for S Corporation Shareholders (Completed)

Date: Tuesday, October 19, 2021
Instructor: James R. Hamill
Begin Time:  11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time
CPE Credit:  1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC

Shareholder basis in the stock and debt of an S corporation is vital for three reasons: First, under Section 1366, a shareholder may only utilize losses to the extent of the basis in the stock and debt. In addition, when a shareholder sells stock, basis in the stock will help determine the gain or loss resulting from the sale. Lastly, the shareholder's basis in S corporation stock will, in part, determine the taxability of any distributions made by the corporation to the shareholder.

In this one-hour CPE, nationally recognized tax expert and instructor James Hamill, CPA, Ph.D., will walk you through the basics of a shareholder's basis in both the stock and the debt of the S corporation.

Who Should Attend
All tax professionals who advise clients on tax planning issues will benefit from this webinar.

Topics Covered

  • S Corporation Basic Issues
  • Impact of PPP loans, deductions, and forgiveness
  • Ordering of Basis Adjustments
  • Stock Basis: Initial Computation
  • Suspended Loss Treatment
  • Tracking Basis
  • AAA versus Basis
  • Creating Debt Basis
  • Back to Back Loan Strategy & Scenarios
  • Back‐to‐Back Loan Summary
  • Entity Approach: Form Dominates Substance
  • Creating Debt Basis???
  • S Corporation Distributions

Learning Objectives

  • Identify the importance of a shareholder's basis in the stock and debt of an S corporation
  • Recognize how to compute stock and debt basis
  • Identify the role stock and debt basis play in utilizing S corporation losses
  • Recognize the steps in ordering of basis adjustments

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None

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