Course ID: PSBD

Partnership/S Corporation Basis and Distribution Issues

Basis is a fundamentally important issue when dealing with passthrough entities, as it impacts the equity holder’s ability to deduct losses and/or receive distributions without a negative tax impact. As well, distributions from the different types of passthrough entities are subject to differences in treatment that can have a major impact on the tax liability of the client. This course will look at the rules on calculating basis, limitations on loss deductions (including at-risk rules) and the treatment of distributions.

  • Inside and outside basis and gain/loss issues on formation
  • Calculation of basis based on annual activities of the passthrough entities
  • Understand how to structure distributions to avoid unpleasant surprise tax liabilities

  • Formation of a new S corporation and contribution of assets in 351 tax free transactions
  • Issuance of partnership interests in exchange for property in tax free manner under 721
  • Treatment of issuance of a partnership interest for services
  • Allocation of debt to partners in a partnership, including deemed distribution provisions
  • Special partnership basis rules, including required allocations for contributed assets
  • Under 704(c) and elective adjustments when a 754 election is in place
  • Treatment of partnership and S corporation distributions
  • At risk rules and their limits on losses

CPAs who advise clients holding interests in passthrough entities and the passthrough entities themselves




This course is available to be scheduled as:

Group Live

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