Event Description

The most difficult concepts to master when dealing with flow-through business entities are the basis and distribution concepts. Major error and malpractice issues occur if the CPA does not fully understand the impact of these rules. This course is designed to focus on the practical applications of these rules.

Designed For

Accounting and Financial Professionals who prepare both individual and flow-through business entity tax returns and need a thorough grasp of these significant issues

Objectives

Determine initial basis and organizing tax-free under Section 351 and Section 721 Discuss what affects basis and how to treat distributions Pass the loss limitation hurdles to deduct pass-through losses

Major Subjects

Coverage of the Inflation Reduction Act of 2022 Applicable coverage of any basis considerations within any recent tax legislation enacted before the presentation Discuss new pass-through basis calculations required as attachments to certain individual returns Excess business losses and the NOL updates made by the CARES and Tax Relief Acts of 2020 Tax Basis Capital Account Reporting Requirements How §179 limitations affect basis and how the tax-benefit rule is applied S corporations: Beware of final IRS regulations regarding open debt of S corporations; understand the effect of stock basis and debt basis and IRS’s recent focus on at-risk basis for shareholders; recognize how AAA applies or does not apply to certain S corporations; learn to apply the complex ordering rules and special elections that can have a big tax result; become aware of when you can have a taxable dividend in an S corporation; understand distributions of cash and property and post-termination transition rules, and temporary new TCJA post-termination rules for eligible corporations LLCs and partnerships: Learn the detailed rules of Section 704 for preventing the shifting of tax consequences among partners or members ;determine how to calculate basis under both Section 704 and for at-risk under Section 65;recognize how recourse, nonrecourse, and qualified nonrecourse debt can create significantly different tax results; review Section 754 step-up in basis rules; and learn how TCJA cleans up the basis treatment of charitable contributions and foreign taxes paid

Prerequisites

Experience in business taxation

Instructions

None