Basis Basics for S Corporation Shareholders

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Shareholder basis in the stock and debt of an S corporation is vital for three reasons: First, under Section 1366, a shareholder may only utilize losses to the extent of the basis in the stock and debt. In addition, when a shareholder sells stock, basis in the stock will help determine the gain or loss resulting from the sale. Lastly, the shareholder's basis in S corporation stock will, in part, determine the taxability of any distributions made by the corporation to the shareholder. In this one-hour CPE, nationally recognized tax expert and instructor James Hamill, CPA, Ph.D., will walk you through the basics of a shareholder's basis in both the stock and the debt of the S corporation.

Who Should Attend
All tax professionals who advise clients on tax planning issues will benefit from this webinar.

Topics Covered

• S Corporation Basic Issues
• Ordering of Basis Adjustments
• Stock Basis: Initial Computation
• Suspended Loss Treatment
• Tracking Basis
• AAA versus Basis
• Creating Debt Basis
• PPP loan expenses and forgiveness
• Shareholder basis reporting
• Back”to”Back Loan Summary
• Back to Back Loan Strategy & Scenarios
• Back”to”Back Loan Summary
• Entity Approach: Form Dominates Substance
• Creating Debt Basis???
• S Corporation Distributions

Learning Objectives

• Identify the importance of a shareholder's basis in the stock and debt of an S corporation
• Recognize how to compute stock and debt basis
• Identify the role stock and debt basis play in utilizing S corporation losses
• Recognize the steps in ordering of basis adjustments

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None