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S Corporation Shareholder Stock Basis and Loss Limitations

Summary

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.

Objectives

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.

Course Details

This course includes an e-book. CPE is issued after exam is successfully completed.




   

Presented by:

How to Earn CPE

To receive credit for this self-study course, you 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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