Handbook for Mastering Basis, Distributions & Loss Limitation [HMBI]


Sep 21, 2017
Time: 8:00am-4:00pm

Credit Hours:



Member: $295.00
Non-member: $445.00

Discussion Leader:

Susan Smith, CPA

Susan Smith manages her own firm specializing in tax planning for individuals and business owners and is also a frequent speaker at tax conferences. Smith was a Senior Manager in the tax departments of Price Waterhouse and Peat Marwick (the predecessor of KPMG). While at Price Waterhouse, she also held the national specialist designation for the real estate and partnership tax practices. During her time at Peat Marwick, Smith led the real estate and tax practices locally. She was an associate adjunct professor at Widener University in the master's taxation program. Her ratings have consistently exceeded 4.7 on a scale of 5.0. Smith is a two-time recipient of the James L. McCoy Discussion Leader of the Year Award for excellence in teaching. Smith earned her Bachelor of Business Administration degree with an accounting concentration, from the University of Toledo.

Full Description

Handbook for Mastering Basis, Distributions, and Loss Limitation Issues for S Corporations, LLCs and Partnerships (HMBI)

September 21, 2017

Pikes Waterfront Lodge
1850 Hoselton Road
Fairbanks, AK

For registrations received less than 21 days from the course date will be charged a late fee of $50 for each 8 hour course and $25 for each 4 hour course and $12.50 for each 2 hour course.

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 recent tax acts and any new legislation
- Executor's new IRS form for disclosing basis in certain distributed property; what about basis of a property distribution from a trust?
- How 179 limitations affect basis & how tax-benefit rule is applied
- Basis implications of personal assets converted to business use
- Calculate basis of inherited qualified and joint tenancy property
- 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 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; - 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 important if (when) tax changes bring the return of C corps
- 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"; - 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

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 pass-through 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.

CPE Credits: 8, Taxation

Level of Knowledge: Intermediate

Prerequisite: Experience in business taxation

Acronym: HMBI

Discussion Leader: Susan Smith, CPA