S-Corporation Basis, Partnership Basis and Capital Accounts

We 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). We will cover how to determine capital accounts, and what a capital account affects.
 

Session Highlights

- Understand what the basis is and why it is important.
- Calculate basis for S-Corporations and Partnerships accurately.
- 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 effects.
 

What We will Discuss

- Basis Calculations for S-Corps and Partnerships
- IRS Guidance on best practices for S-Corps and Partnership
- Distributions and their effects on basis
- Deductions, Losses and Suspense accounts
- Form 7203
- Impact of basis on individual tax returns
- Capital Accounts
 

What You will Learn

- Understand what basis is and why it is important.
- Calculate basis for S-Corporations and Partnerships accurately.
- 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.
 

Why You Should Attend

Attending this webinar is essential for  professionals who want to deepen their understanding of basis calculations and its critical role in S-Corporations and Partnerships. You’ll gain practical skills to accurately calculate and apply basis on personal tax returns, ensuring compliance and maximizing client outcomes. Additionally, you'll enhance your ability to explain complex basis differences to clients and effectively manage Partnership Capital Accounts.
 

Who will Benefit

- CPAs
- Tax Preparers
- Lawyers
- Small Business Owners
- Accountants