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.


LEARNING OBJECTIVES
  • 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

MAJOR TOPICS
  • 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

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

FIELD OF STUDY
Taxes

PREREQUISITES
None

COURSE PRODUCER
Nichols Patrick CPE, Inc

CPE CREDITS
8.0

LEVEL
Intermediate

This course is avaliable for your group as:

Group Live
 

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