Basics of Basis Self-Study
When buying or selling assets, the basis of those items is critical to the future calculation of capital recovery, gain or loss realization and recognition, and depreciation. This course provides the tools to determine an asset’s initial basis and adjustments to that basis. Assets discussed include tangible or intangible property, including real and personal property, stocks, bonds and mutual funds, as well as partnership and S corporation interests.
Upon completion of this course, you will be able to:
- Determine basis based on various means of acquisition including purchase, creation, gift and inheritance
- Identify payments capitalized as part of basis and those expensed as a current operating expense
- Calculate the basis of stocks
- Calculate the basis of mutual funds using the allowable methods
- Apply the timing and ordering of basis adjustments
- Differentiate between the partner’s outside and inside basis in a partnership
- Comprehend the differences between the shareholder’s stock basis and debt basis in an S corporation
This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.