2024 S Corporations: How to Calculate Shareholder Basis

Overview

A detailed analysis of the calculations related to determining a shareholder's tax basis for S corporation shares and loans. How to use the Form 1120S, Schedule K-1 information for basis determination. An illustrative example demonstrates how the process works, as well as the many potential pitfalls.

**Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com.

Course Instructor: Steven Dilley, CPA, JD, PhD

Highlights

Discuss the calculation of basis when the entity is formed including the impact of contributed property
Explain the importance of shareholder loans to the entity
Uses a comprehensive example to illustrate the mechanics of the basis determination process
Discuss how basis is impacted by distributions of corporation property
Explain how basis is impacted by sale/or liquidation of the S corporation interest
Discuss how S corporation losses impact Form 1040 Schedule E reporting
Show how to get from the Schedule K-1 information to the basis calculations

Prerequisites

Basic working knowledge of business and S corporation taxation

Designed For

CPAs working in public accounting firms and/or working for S corporations

Objectives

Identify the tax issues related to S corporation owner's basis for shares and loans from formation through operations and concluding with sale and/or liquidation

Preparation

None

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by ACPEN. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.