Source: https://www.dscpa.org/learning/20MBLL-NC/mastering-basis-and-loss-limitations-on-pass-through-entities
Timestamp: 2020-04-06 02:17:40
Document Index: 773245591

Matched Legal Cases: ['§461', '§179', '§704', '§704', '§465', '§754']

Mastering Basis and Loss Limitations on Pass-Through Entities - Professional Development – DSCPA
Mastering Basis and Loss Limitations on Pass-Through Entities
661 S. DuPont Highway
Surgent's Mastering Basis Issues for S Corporations, Partnerships, and LLCs
Four Tiers of Loss Limitations: A Guide to the New Rules for Pass-through Entities
Owners of S corporations and partnerships are subject to numerous limitations on pass-through losses, each with unique rules, applications, and complexities. With the increase in popularity of pass-through business entities, it is essential for CPAs to understand the complexities and interactions of these pass-through loss limitations.
Pass the loss limitation hurdles to deduct pass-through losses
Analyze how basis in an ownership interest in a pass-through entity is established
Discuss how activity of the entity, distributions, and optional adjustments increase or decrease basis
Discuss when basis is "at-risk" under section 465, and the resulting loss disallowance and carryforward related to basis that is not at-risk
Define passive activities under section 469 and exceptions to the passive loss rules
Discuss when and how aggregation of activities should be used to avoid the passive loss rules
Analyze new §461(l) created by the Tax Cuts and Jobs Act of 2017 and understand the limitation calculation and resulting carryforward
Analyze the hierarchy of the loss limitations with examples of the application of the four tiers of losses and how they interact
Applicable coverage of any basis considerations within the Tax Cuts and Jobs Act, or other recent tax legislation enacted before the presentation
Discuss new pass-through basis calculations required as attachments to certain individual returns
Excess business losses and new rules for NOLs
How §179 limitations affect basis and how the “tax-benefit” rule is applied
S corporations: Beware of final IRS regulations regarding “open debt” of S corporations; understand the effect of stock basis and debt basis and IRS’s recent focus on “at-risk basis” for shareholders; recognize how AAA applies or does not apply to certain S corporations; learn to apply the complex ordering rules and special elections that can have a big tax result; become aware of when you can have a taxable dividend in an S corporation; understand distributions of cash and property and post-termination transition rules, and temporary new TCJA post-termination rules for eligible corporations
LLCs and partnerships: Learn the detailed rules of §704 for preventing the shifting of tax consequences among partners or members; determine how to calculate basis under both §704 and for “at-risk” under §465; recognize how recourse, nonrecourse, and qualified nonrecourse debt can create significantly different tax results; review §754 step-up in basis rules; and learn how TCJA cleans up the basis treatment of charitable contributions and foreign taxes paid
Tier 1: Basis limitations for S corporation shareholders and partners
Tier 2: Section 465 at-risk limitations for S corporation shareholders and partners, including the impact of debt, indemnities, guarantees, and shareholder/partner agreements
Tier 3: Section 469 passive loss limitations and exceptions to the limitations
Tier 4: The new excess business loss limitation of the Tax Cuts and Jobs Act of 2017 (new section 461(l))
CPAs who prepare both individual and flow-through business entity tax returns and need a thorough grasp of these significant issues, as well as those who want to learn about the four pass-through loss limitations, their interactions, and the new rules.
Experience in business taxation and basic familiarity with loss allowance rules of pass-through entities
20MBLL/NC
Early registration discount is effective through October 13, 2020
$335.00 after October 13th
$555.00 after October 13th