Resolving Complicated Partnership and S Corporation Activity Self-Study

Summary

This course dives into some of the more difficult but common tax issues unique to partnerships and S corporations. It covers calculating and maintaining basis in either entity using worksheets or Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, and the tax impact basis has on distributions and pass-through losses. Additionally, tax professionals may expand their knowledge of partnership taxation by analyzing tax basis capital accounts, allocations of profit and loss, the §754 election, a change in partners and the impact of hot assets. Tax professionals will also increase their expertise in S corporations by examining reasonable compensation for shareholders, the built-in-gains (BIG) tax and changes in stock ownership.

Objectives

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

• Maintain basis in a partnership and tax basis capital accounts
• Calculate stock and debt basis in an S corporation by completing Form 7203
• Determine whether pass-through losses are deductible or if distributions are taxable
• Recognize what are guaranteed payments for partners and determine reasonable compensation for shareholders
• Outline when a §754 election is appropriate and calculate and report basis adjustments necessary
• Summarize the rules for partnership allocations of income and loss
• Calculate and report the BIG tax for a previous C corporation that becomes an S corporation
• Analyze the tax consequences of a change in partners or shareholders

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.