8.00 CPE Credit Hours
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.
CPAs who prepare both individual and flow-through business entity tax returns and need a thorough grasp of these significant issues. This course is a must for practitioners to help reduce and avoid this exposure to malpractice.
- Determine initial basis and organizing tax-free under 351 and 721
- Understand what affects basis and how to treat distributions
- Pass the four loss limitation hurdles to deduct pass-through losses
- Applicable coverage of any basis considerations within the Tax Cuts and Jobs Act, and other recent tax legislation enacted before the presentation
- Discuss new pass-through basis calculations required as attachments to certain individual returns
- Executor's new IRS form for disclosing basis in certain distributed property; what about the basis of a property distribution from a trust?
- How 179 limitations affect basis and how the "tax-benefit" rule is applied
- Basis implications of personal assets converted to business use
- How to calculate basis of inherited and joint tenancy property
- Excess business losses and new rules for NOLs
- S corporations: Beware of final IRS regulations regarding "open debt"; determine how to calculate basis; worksheets are included; 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 doesn't apply to S corporations; learn to apply the complex basis ordering rules and special elections that can have a big tax result; and much more
- LLCs and partnerships: Learn the detailed rules of 704 for preventing the shifting of tax consequences among partners or members; learn to calculate basis under 704 & for "at-risk" under 465; recognize how recourse, nonrecourse, and qualified nonrecourse debt can create significantly different tax results; learn the difference between basis and "at-risk basis"; and much more
Experience in business taxation
Surgent CPE, LLC
Level of Knowledge