S Corporation Shareholder Stock Basis and Loss Limitations
All shareholders of an S corporation must keep track of their basis in the S corporation and they generally do not know the tax laws behind tracking basis. As a result, tax professionals must be able to calculate and adjust basis to determine if distributions from an S corporation or repayment of shareholder loans are taxable, or if pass-through losses are deductible. You will learn how to compute the three different types of basis—stock, debt and at-risk—and how they relate to one another. In addition to basis limitations, learn how the passive activity loss rules apply to S corporation shareholders. Get ready to dig into the intricate rules surrounding shareholder basis and loss limitations.
Upon completion of this course, you will be able to:
- Calculate a shareholder’s stock and debt basis.
- Determine the timing and ordering rules for basis adjustments.
- Distinguish between basis for regular tax and AMT purposes.
- Summarize the taxation of distributions from an S corporation.
- Identify the repayment of reduced-basis debt.
- Calculate a shareholder’s at-risk basis.
- Apply the passive loss limitations to S corporation shareholders.
This course includes an e-book. CPE is issued after exam is successfully completed.