Partnership and S Corporation - Basis and Distribution Issues

Overview

Basis is a fundamentally important issue when dealing with pass-through entities, as it impacts the equity holder’s ability to deduct losses and/or receive distributions without a negative tax impact. As well, distributions from the different types of pass-through entities are subject to differences in treatment that can have a major impact on the tax liability of the client. This course will look at the rules on calculating basis, limitations on loss deductions (including at-risk rules), and the treatment of distributions.

Prerequisites

General tax knowledge

Designed For

Practitioners who advise clients holding interests in pass-through entities and the pass-through entities themselves.

Objectives

• Understand inside and outside basis and gain/loss issues on formation • Perform calculation of basis based on annual activities of the pass-through entities • Understand how to structure distributions to avoid unpleasant, surprise tax liabilities

Preparation

None