Target Audience: CPAs, EAs, Annual Filing Season Program Participants
Field of Study: Taxation (NASBA); Federal Tax/Tax Related Matters (IRS)
Seminar Level: Beginner
IMPORTANT INFORMATION REGARDING CONTINUING EDUCATION CREDIT: THE IRS ACCEPTS THIS SEMINAR FOR ONE (1) CONTINUING EDUCATION CREDIT FOR ENROLLED AGENTS (EA) AND ANNUAL FILING SEASON PROGRAM (afsp) PARTICIPANTS. Others, PLEASE CONSULT WITH YOUR RESPECTIVE STATE LICENSING AGENCY REGARDING ACCEPTABILITY OF THIS CREDIT.
Note: the credit received from this seminar qualifies as continuing education that is required to obtain the voluntary AFSP – record of completion. however, this website does not offer the AFSP annual federal tax refresher (AFTR) course.
IRS COMMUNICATIONS AND LIAISON IS REGISTERED WITH THE NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY (NASBA) AS A SPONSOR OF CONTINUING PROFESSIONAL EDUCATION ON THE NATIONAL REGISTRY OF CPE SPONSORS. STATE BOARDS OF ACCOUNTANCY HAVE FINAL AUTHORITY ON THE ACCEPTANCE OF INDIVIDUAL COURSES FOR CPE CREDIT. COMPLAINTS REGARDING REGISTERED SPONSORS MAY BE SUBMITTED TO THE NATIONAL REGISTRY OF CPE SPONSORS THROUGH ITS WEBSITE: WWW.LEARNINGMARKET.ORG
DISCLAIMER: THIS SEMINAR WAS FILMED IN New Orleans, LOUISIANA, ON JULY 28, 2016, AND THE INFORMATION WAS CORRECT AT THE TIME OF RECORDING.
The IRS Small Business Self Employed Division presented this seminar at the 2016 IRS Nationwide Tax Forum.
This seminar discusses the importance of tracking S corporation shareholder stock and debt basis and provides information on how to calculate stock basis. Topics to be covered include:
• importance of S corporation stock basis;
• S corporation stock basis ordering rules;
• computation of S corporation shareholder stock basis;
• what constitutes valid shareholder debt basis; and
• Tax ramifications of an S corporation's repayment to a shareholder on reduced basis debt.
By the end of this presentation, you will be able to:
• Identify the biggest problem in shareholder debt basis
• Recognize what qualifies as indebtedness of the S Corp to the Shareholder
• Determine case law factors that indicate a bona fide debt instrument
• Recall where to find additional resources of information on S Corps
• Identify when there is debt basis
No prerequisites or advanced preparation are required for this seminar.