This comprehensive case-driven training is designed to get accountants up to speed quickly in basis calculations and distribution planning for owners of pass-thru entities (S corporations, partnerships, and LLCs). The cornerstone of the course is a line-by-line analysis of Schedule K-1s and how they affect basis calculations, helping practitioners navigate complex income tax rules with confidence. Each attendee receives a detailed reference manual with practice aids, real-world examples, and case studies to enhance learning and application.

Part 1  Fundamentals of Basis Calculations

Date: Oct 21, 2025 |Time: 12:00 PM ET | 11:00 AM CT | 09:00 AM PT | 240 Minutes

Part 1 focuses on the foundation of basis calculations for S corporation shareholders and partners/members of LLCs. Attendees will learn how to compute stock and debt basis, understand the three main reasons for calculating basis, and explore how Schedule K-1 line items flow through to the individual owner’s Form 1040.
Session Highlights:

• List the three main reasons for calculating shareholder/partner basis
• Calculate stock and debt basis for S corporation shareholders
• Calculate basis for partners and members of LLCs
• Determine losses allowed from at-risk activities
• Review Form 1120S and Form 1065 Schedule K-1s and their effect on individual returns
• Hands-on case studies with real-world examples
• Analysis of new legislation affecting basis calculations
• Guidance on Form 7203 – S Corporation Stock and Debt Basis Limitations

Part 2  Distributions, Debt Basis & Advanced Planning

Date: Oct 22, 2025 | Time: 12:00 PM ET | 11:00 AM CT | 09:00 AM PT | 240 Minutes

Part 2 covers advanced distribution planning, debt basis, and complex ownership scenarios. Participants will examine how cash/non-cash distributions, loan repayments, and recourse vs. non-recourse debt affect basis and at-risk amounts. The session also explores the tax treatment of sales of ownership interests and planning strategies for complex client situations.
Session Highlights:

• Line-by-line analysis of Schedule K-1s for stock, debt, and outside basis
• Effects of cash and non-cash distributions on basis and taxation
• Compare tax treatment of sale of S corporation stock vs. partnership interest
• Determine what constitutes debt basis under final regulations
• Tax implications of repaying loans to shareholders and on open account debt
• How recourse and non-recourse debt affect basis calculations and at-risk amounts
• Review loss and deduction limitations on Form 1040
• Hands-on application through real-world case studies

Learning Objectives (Combined for Both Parts)

• List the three primary reasons for calculating basis in S corporations and partnerships/LLCs.
• Calculate stock and debt basis for S corporation shareholders.
• Calculate basis for partners and LLC members.
• Determine losses allowed from at-risk activities.
• Review Schedule K-1 line items and understand their impact on Form 1040 reporting.
• Apply knowledge of new legislation affecting basis computations.
• Analyze the effect of distributions and loan repayments on basis.
• Understand the impact of recourse vs. non-recourse debt on basis and at-risk calculations.

Credits and Other information:

• Recommended CPE credit – 8.0
• Recommended field of study – Tax
• Session Prerequisites and preparation: None
• Session learning level: Basic
• Location: Virtual/Online
• Delivery method: Group Internet Based
• IRS Course ID: PJGWS
• Attendance Requirement:  Yes
• Session Duration: 8 Hours
• Case Studies and Live Q&A session with speaker
• PowerPoint presentation for reference

Who Will Benefit:

• CPA
• Enrolled Agents (EAs)
• Tax Professionals
• Attorneys
• Other Tax Preparers
• Finance professionals
• Financial planners