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.
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
Major Topics
- Timely coverage of breaking tax legislation
- Applicable coverage of any basis considerations within any recent tax legislation
- Passthrough basis calculations required as attachments to certain individual returns
- Executor’s 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 tax-benefit rule is applied
- Basis implications of personal assets converted to business use
- How to calculate basis of inherited qualified and joint tenancy property
- Tax basis capital account reporting requirements