S Corporation Basis: How to Calculate the Stock Basis (Completed)

Date: Monday, August 8, 2022
Instructor: Jennifer Kowal
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

Understanding how to calculate S Corporation shareholder stock basis accurately is extremely important. A shareholder may only utilize losses to the extent of basis in stock and in bona fide debt owed from the S Corporation to the shareholder. Further, the shareholder's basis in S corporation stock is important to determining the taxability of any distributions made by the corporation to the shareholder. And of course, stock basis helps determine gain or loss on the ultimate sale of the S corporation stock, including in an exit strategy transaction such as an acquisition.

This course covers the rules for calculating S corporation shareholder stock basis, including initial basis, adjustments for income and losses and distributions, and the ordering rules for adjustments. We will use realistic examples to discuss common scenarios.

Topics Covered

  • Rules for calculating S corporation shareholder stock basis
  • Initial basis, adjustments for income and losses and distributions
  • The ordering rules for adjustments
  • Realistic examples to discuss common scenarios

Learning Objectives

  • Identify how to calculate S Corporation shareholder stock basis accurately is extremely important

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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