SM Handbook for Mastering Basis, Distributions, Loss Limitation [HMBI Anc]

Full Description

SURGENT McCOYS HANDBOOK FOR MASTRING BASIS, DISTRIBUTIONS AND LOSS LIMITATION ISSUES FOR S CORPORATIONS, LLCs AND PARTNERSHIPS

Date: November 6, 2013

Facility: AKCPA Office
341 West Tudor Rd. #105
Anchorage, Alaska 99503

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.

Major Topics:
Applicable coverage of the tax acts of 2012 and any new legislation
S Corporations:
Beware of recent Final IRS Regulations regarding Open Debt
Determine how to calculate basis. Worksheets are included.
Understand the effect of stock basis and debt basis and IRSs recent focus on at-risk basis for shareholders
Recognize how AAA applies or doesnt apply to S corporations
Learn to apply the complex basis ordering rules and special elections that can have a big tax result
Discuss loss limitation rules in depth
When you can have a taxable dividend in an S corporation
Understand distributions of cash and property
Understand the post-termination transition rules, which will be of great importance if (when) future tax changes bring the return of the C corporation
LLCs and Partnerships:
Learn the detailed rules of 704 for preventing the shifting of tax consequences among partners or members
Determine how to calculate basis under both 704 and 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
Review 754 step-up in basis rules
The economic effect equivalence test or dumb-but-lucky rule
Learn to apply the complex rules of distribution of cash vs. property and the planning strategies
Find out how hot assets can change the game for distributions

Learning Objectives:
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 losses

Designed For: 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.

Level of Knowledge: Intermediate

CPE Credits: 8, Taxes

Prerequisite: Experience in business taxation

Acronym: HMBI

Discussion Leader: Peter Towle

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