Partnerships and S Corporations: How to Calculate Basis
Date: April 4, 2025
Speaker: Jason Dinesen
Description
The IRS has recently increased the pressure on how to calculate and report partner and shareholder basis. Changes in the forms reflect these developments. This program provides a detailed analysis of the calculations related to determining tax basis for a partnership interest and S Corporation shareholder shares and loans. How to use the Form 1065, Schedule K-1 and Form 1120S, Schedule K-1 information for basis determination. Illustrated examples with filled in forms will demonstrate how the processes works and their many potential pitfalls.
This two-hour webinar will discuss basis calculations for S-Corps and Partnerships, as well as capital accounts and partnerships. Basis calculations are tricky for practitioners, because basis is actually an individual/Form 1040 concept — individuals are responsible for determining their basis. However, all of the items necessary for making this computation are generated at the S-corporation or partnership level.
This training focuses on the numbers necessary to make basis calculations, and what those calculations actually impact. In additions, partnerships now have a requirement to report capital accounts under the tax basis of accounting. Capital accounts ARE an entity requirement (unlike basis). This webinar will cover how to determine capital accounts, and what a capital account affects.
Session Highlights:
- Identify the tax issues related to S Corporation owner's basis for shares and loans from formation through operations and concluding with sale and/or liquidation
- Identify the tax issues related to LLC members/partners basis from formation through operations and concluding with sale and/or liquidation
- Understand potential pitfalls and planning strategies
Areas covered in the Session
- Calculation of basis when the entity is formed, including the impact of contributed property
- How to calculate partnership tax basis capital accounts
- Explains the use of both "inside" and "outside" basis determination
- Clarifies the how partnerships and S
- Explain the differences of basis between S-Corporations and Partnerships to clients
- Apply basis correctly on personal tax returns
- Understand Partnership Capital Accounts and their affects
Who Should Attend:
- CPA, EA, attorney, and staff
- Tax department
- CFOs and controllers
- Accounts payable and Accounting Managers
- Public accountants
- Sole Proprietors
- Owners
