Description

This comprehensive case-driven training is designed to get the accountant up-to-speed quickly in the area of basis calculations and distribution planning for the owners of pass-through entities (i.e., S-corporations, partnerships, and limited liability companies (LLCs)). The cornerstone of this course is the line-by-line analysis of the Schedule K-1s and how it affects the basis calculations.

Objective

Once participants have completed this session, they should be able to * Understand the major federal income tax laws impacting individuals * Identify and comprehend any newly enacted legislation, changes, and IRS guidance affecting individual income tax returns

Highlights

* This session is taught using a Hands-On methodology * Real-world examples and cases are used to demonstrate the complex income tax code and regulations to enhance the participant's learning experience * Each attendee will receive the most comprehensive reference manual with numerous practice aids, real-world examples, and case studies * Topics include but are not limited to * Detailed coverage of any new legislation (i.e., Tax Cuts & Jobs Act) affecting basis computations and distributions and changes to the Schedule K-1s * Line-by-line analysis of the Schedule K-1s to determine how the items affect an S-shareholder’s stock and debt basis and a partner/member’s outside basis and where the items get reported on federal individual income tax return * The three loss and deduction limitations on the owner’s individual income tax return (i.e. basis, at-risk, and other Form 1040 limitations) * How cash or noncash distributions affect the basis calculations and whether or not they are taxable to the owners * Compare the tax treatment of the sale of a shareholder’s stock in an S-corporation and a partner’s interest in a partnership * What constitutes debt basis for a S-corporation shareholder under the final regulations * The tax ramifications of repaying loans to S-corporation shareholders and on open account debt * How recourse and nonrecourse debt effect a partner or member’s basis calculations and amount at-risk

Who Should Attend

Tax professionals who need an in-depth training course on basis calculations and distributions rules for S-corporations, partnerships, LLCs, and their owners

Required Knowledge

None

Advanced Prep

Basic understanding of individual income taxation