Schedule K-1 to Form 1040 for Basis, At Risk & Passive Loss limitations
Date: Monday, November 2, 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
Accurately reporting Schedule K-1 activity on an individual’s Form 1040 requires more than simply entering pass-through income or losses. This course provides tax professionals with a practical, step-by-step framework for determining whether current-year and prior-year Schedule K-1 losses are deductible after applying basis, at-risk, and passive activity loss limitations. Designed to bridge theory and real-world application, this course focuses on avoiding common errors that lead to disallowed deductions, IRS notices, and audit exposure.
Participants will examine how tax basis, at-risk limitations, material participation, and rental activity rules interact to determine allowable losses for partners, S corporation shareholders, and LLC members. The course also provides detailed guidance on Forms 7203, 6198, and 8582, including how these forms work together within common tax software to track suspended losses and properly carry them forward. Attendees will leave with improved confidence in navigating complex loss limitation rules and ensuring accurate reporting from Schedule K-1 through Form 1040.
Who Should Attend
This course is designed for CPAs, enrolled agents, and tax professionals who prepare or review individual returns that include Schedule K-1 activity from partnerships, S corporations, or LLCs.
Topics Covered
- Overview of Schedule K-1 reporting to Form 1040
- Tax basis vs. at-risk basis limitations
- Material participation and passive activity rules
- Suspended losses and carryforward tracking
- Form 7203 – S corporation basis limitations
- Form 6198 – at-risk limitations
- Form 8582 – passive activity loss limitations
- Schedule E reporting considerations
Learning Objectives
- Determine when current-year Schedule K-1 losses are deductible on Form 1040
- Calculate tax basis and at-risk basis for partners, shareholders, and LLC members
- Apply at-risk limitation rules using Form 6198
- Apply S corporation stock and debt basis limitations using Form 7203
- Correctly apply passive activity loss limitations under Form 8582
- Develop processes for tracking and utilizing suspended losses and deductions from prior years
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
