Tax Basis Questions Impacting Partners and S Corporation Shareholders (TBQI)

Robert C. Lickwar, CPA, Ian J. Redpath, Esq., Lance G. Weiss, CPA, CVA, Michael J. Tucker, JD, CPA (moderator)
  • 3
  • Basic
  • Taxes

Individual course: $99
Best Value: All-Star Tax Season Pass
Volume Discounts: 
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The IRS believes that partners and S corporation shareholders often avoid paying income tax by misstating their tax bases. This program covers the key issues partners and S corporation shareholders encounter when they make cash and property distributions and when they sell their ownership interests. Panelists will discuss the new tax basis capital account reporting requirements and when calculating S corporation shareholder basis is required. The program also covers Section 743(b) adjustments made when a Section 754 election is in effect. 

Major Topics:

  • Difference between a partner’s inside and outside basis in a partnership
  • Calculating a partner’s tax basis capital accounts
  • Negative capital accounts
  • Mechanics of calculating tax basis of a partner and an S corporation shareholder
  • The role of appraisers establishing the fair market value of assets being stepped up
  • Where, when and how to step up and step down basis in assets under Section 743(b)
  • Consequences of making a Section 754 election in the context of sale of a partnership interest
  • Taxability of cash and property distributions made by a partnership to a partner
  • Section 754 adjustments applied to goodwill

Learning Objectives

  • Advise clients who are partners and S corporation shareholders regarding complex and often confusing tax basis questions

Tax practitioners who prepare income tax returns for pass-through entities and tax practitioners who advise owners of pass-through entities on tax transactions





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