Basis: S Corp Shareholders Form 7203 and Partnership Basis (Completed)

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This course reviews accurate reporting, correcting, and reconstructing for partner and S corp shareholder basis. Including two very common matters affecting S corp shareholder and partner basis related to how business ERTC refunds and PPP loans were reported on the entity tax returns. These entity reporting errors cause basis to be understated, often by substantial amounts. Review these and other critical basis miscalculations and help business and individual tax preparers identify clients with these issues and how to fix them. See how incoming or exiting shareholders, partners and LLC members' accounts are handled plus basis issues when an entity closes or distributes assets.

Who Should Attend
Individual and business tax practitioners both need to understand basis.

Topics Covered

• Form 7203, S corp Shareholders Basis
• Partner's basis worksheet
• IRS rules for partners capital accounts and basis
• Inside and outside basis
• Tax practitioner's responsibilty for basis, and possible exposure for incorrect basis
• Basis issues unique to S corps and partnerships
• Effects of incorrect basis and timing of corrections, if needed

Learning Objectives

• Understand basis basics for shareholders, partners, & LLC members
• Identify specific business transactions which may cause basis problems
• Develop best practices for correcting or reconstructing basis if needed
• Properly handle basis calculations for asset contributions or distributions
• Determine tax practitioners' exposure and responsibilities related to basis

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None