Once participants have completed this session, they should be able to:
- List the 3 main reasons for calculating a shareholder's basis in a S corporation and partner/member's basis in a partnership/LLC.
- Calculate the stock and debt basis for S corporation shareholders.
- Calculate the basis for partners and members of a LLC.
- Calculate losses allowed from at-risk activities.
- Review the Form 1120S and Form 1065 Schedule K-1s to determine how the line items affect basis calculations and get reported on the individual owner's Form 1040.LC.
The Tax U More With This Vendor
Tax professionals that need an in-depth training course on basis calculations and distributions rules for S Corporations, partnerships, LLCs and their owners.
Basic understanding of individual income taxation.
Garverick, J Patrick
Pat Garverick is a Certified Public Accountant (CPA) who began his career in public accounting in 1988 after obtaining his Bachelor of Science in Business Administration (BSBA) in Accounting from The Ohio State University. After receiving his Master of Taxation (MT) degree from Arizona State University in 1992, Garverick began operating his own tax and financial planning business. He also started writing, reviewing, and teaching tax and financial planning continuing professional education courses around the country. In addition to being a CPA, Garverick is also a Certified Financial Planner (CFPÂ®). Garverick has presented continuing education sessions throughout the country and has won awards for both his skills as an instructor as well as for the content he has created. During his time in college Garverick earned a letter as a member of the Ohio State Basketball squad. He remains a staunch supporter of the sports programs at his alma mater, OSU.
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 participants 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 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 a 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 non-cash 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 a 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 non-recourse debt effect a partner or member's basis calculations and amount at-risk.