Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
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 course, 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.
Publication Date: October 2022
Designed For
All tax professionals who advise clients on tax planning issues will benefit from this webinar.
Topics Covered
- S Corporation Basic Issues
- Why Avoid Open Account???
- Ordering of Basis Adjustments
- Stock Basis: Initial Computation
- Suspended Loss Treatment
- Tracking Basis
- AAA versus Basis
- PPP Loans
- Creating Debt Basis
- Back-to-Back Loan Strategy
- Back-to-Back Loan - Scenario 1
- Back-to-Back Loan - Scenario 2
- Back-to-Back Loan Summary
- Entity Approach: Form Dominates Substance
- 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
- Identify how many different basis computations S Shareholders have to track
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
None
Advance Preparation
None
Instructor
James R. Hamill
Dr. Hamill is the Director of Tax Practice at Reynolds, Hix & Co., P.A., in Albuquerque, New Mexico. He is the author of more than 36 CPE courses and more than 100 articles in professional tax journals and writes a weekly column on tax issues for the Albuquerque Journal. He has lectured on structuring tax transactions throughout the country for international CPA firms, State CPA Societies, and numerous other organizations. He has developed and instructed webinars on a variety of tax topics over the past 10 years. He is a CPA in New Mexico, a past Chair of the New Mexico Society of CPAs, and has 40 years of experience in tax practice.