Tackling S Corp Shareholder Basis


It is technically the shareholder’s responsibility to keep track of their basis in S corporation stock, though many fail to do so or don’t keep an accurate account. Rather than gambling on your clients’ calculations, tackle them yourself! In this webinar, you will learn how to calculate and track S corporation basis.

If your shareholder clients do not keep track of their basis in S corporation stock, the code presumes the basis to be zero and, as the tax professional, you can’t just assume that their stock is equal to retained earnings. You’ll also need to use the amount of basis in S corporation stock held by your shareholder clients to determine the tax consequences of distributions. By the end of this presentation, you’ll be able to correctly calculate shareholder’s initial basis in S corp stock, as well as apply adjustments that either either increase or decrease basis.


Upon completion of this course, you will be able to:

  • Define basis for tax clients.
  • Correctly calculate shareholder’s initial basis in S corporation stock.
  • Apply the timing and ordering rules for basis adjustments to clients’ situations.
  • Correctly apply adjustments that increase basis.
  • Correctly apply adjustments that decrease basis.
  • Distinguish between basis for regular tax and AMT purposes.
  • Accurately calculate end-of-year shareholder basis.

Course Details

This webinar includes the presentation slides, exam questions, live webinar recording with review questions, and Q&A transcript. CPE is issued after exam is successfully completed.


Presented by: Steve O'Rourke, EA

How to Earn CPE

To receive credit for this on-demand webinar, you must make at least one attempt to answer each of the review questions included with the webinar video. You also must successfully pass the course exam with a score of 70% or better.

The course and exam will expire one year from the date of purchase.

Cancellation Policy

​Because this is an online education offering, it is nonrefundable.

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