S Corporation Shareholder Basis – Calculation and Compliance (Completed)
Date: Tuesday, March 3, 2026
Instructor: Mark Ribas
| 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
Accurate calculation and maintenance of S corporation shareholder basis is critical to ensuring proper tax compliance and strategic planning. Shareholder basis determines whether losses are currently deductible, whether distributions are taxable, and how gains or losses are calculated upon disposition of S corporation stock. Errors in basis calculations can lead to disallowed losses, unexpected taxable distributions, and increased audit risk.
This intermediate-level online course provides a comprehensive review of the rules governing S corporation shareholder stock and debt basis under Subchapter S. Mark Ribas explains how outside basis is established, adjusted, and tracked over time, with particular emphasis on ordering rules, common compliance pitfalls, and documentation requirements. Participants will examine the tax treatment of shareholder loans, capital contributions, distributions, and income or loss allocations, as well as how basis impacts transactions such as redemptions and ownership changes.
Designed for tax professionals who prepare, review, or advise on S corporation returns, this course delivers practical guidance that supports accurate compliance, effective tax planning, and confident client advisory services.
Who Should Attend
This course is designed for tax professionals who work with S corporations and must accurately calculate and monitor shareholder basis.
Topics Covered
- Establishing initial S corporation shareholder stock basis
- Basis adjustments for income, loss, deductions, and credits
- Cash and property distributions to shareholders
- Shareholder loans and debt basis considerations
- The Accumulated Adjustments Account (AAA)
- Ordering rules for basis adjustments
- Basis implications of common corporate transactions
Learning Objectives
- Identify the components of an S corporation shareholder’s outside stock and debt basis
- Calculate shareholder stock basis and basis adjustments resulting from income, losses, contributions, and distributions
- Determine which shareholder loans qualify as bona fide debt for basis purposes
- Apply the ordering rules governing S corporation basis adjustments
- Evaluate shareholder basis implications of common S corporation transactions
Level
Intermediate
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
The attendee should have a fundamental knowledge of tax law surrounding a Subchapter S corporation
Advance Preparation
None
