Partnership and S corporation issues are better worked through together

Partnership and S corporation work rarely presents one neat, isolated problem. A basis calculation can affect whether a loss is deductible, while a distribution or ownership change may produce an unexpected tax result.

NATP’s Resolving Complicated Partnership and S Corporation Activity Online Training gives tax professionals dedicated time to work through these interconnected issues with instructor Tom O’Saben, EA, Ed.M. Rather than trying to squeeze another technical topic between returns or client calls, participants can prepare in advance and then focus on applying the material during two instructor-led sessions.

When “just check the basis” is not so simple

The training covers the calculations and decisions that make partnership and S corporation work so challenging. Participants will practice maintaining partnership basis and tax-basis capital accounts. For S corporations, they’ll complete Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, and examine whether pass-through losses are deductible.

• Partnership coverage includes how to categorize guaranteed payments and when a §754 election is appropriate. Participants will examine how a change in partners affects the tax result, including the treatment of hot assets.
• S corporation coverage tackles reasonable compensation and the built-in gains (BIG) tax. Participants will examine the tax consequences of changes in stock ownership.

These rules have clear advisory value when a client is considering a distribution or ownership change. Modeling the tax result in advance can help the client change the transaction or reconsider its timing. Reliable basis records make that planning possible.

Grab a pencil and pull up a chair

Most CPE ends when the presentation does. You watch, then move on. This training puts you back in the student seat.

When was the last time your CPE came with homework? Participants are encouraged to complete the reading assignments before the Nov. 2 and Nov. 4 sessions, which will run from 10 a.m. to 2 p.m. CT. That preparation allows the class to go beyond an overview and into real-life scenarios with Tom O’Saben.

Participants will have opportunities to ask questions throughout both sessions. Can’t retain every adjustment or limitation on the first pass? Recordings will be provided, allowing you to revisit the material when a similar issue appears in an actual client file.

This is your chance to clear some space on the calendar and give a difficult subject your full attention. Grab your pencils. Class is in session.

Arrive ready to untangle the complexity

A little preparation can make the instructor-led time much more useful:

1. Complete the recommended reading and mark your sticking points. Note the rules or fact patterns that require another explanation. Those marks can become your question list for the live sessions.
2. Think about where these issues appear in your practice. Review a partnership or S corporation engagement and identify where basis records are incomplete or a proposed transaction could change the tax result. Turn the issue into a question you can use to connect the course material with your own work.

Partnership and S corporation rules are too interconnected to master in the spare minutes between client work. Dedicated study time can make the difference between recognizing a rule and knowing how to apply it when a client file is open.

The Resolving Complicated Partnership and S Corporation Activity Online Training offers eight hours of CPE for qualifying designations. To earn CPE, participants must pass the course exam with a score of 70% or higher.

Join Tom O’Saben on Nov. 2 and Nov. 4 to work through the difficult parts now. The next time a complicated partnership or S corporation question lands on your desk, you will be glad you did.