Description:

This book is for preparing 2024 taxes. All shareholders in an S corporation are responsible for tracking their own basis in the S corporation. Primarily, to claim losses and deductions passed through on Schedule K-1, Shareholder’s Share of Income, Deductions, Credits, etc., or to receive tax-free distributions from the S corporation, shareholders must have basis and they must file Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations. It’s important to establish basis so the IRS doesn’t argue the shareholder’s basis is zero. In this course, we introduce an example and explain how to track basis for an S corporation shareholder over a period of years.

Topics include:

• Computing the shareholder’s stock and debt basis in an S corporation
  
• Summarizing the rules for adjusting basis each year
  
• Completing Form 7203
• Reconstructing basis that has not been tracked for years
  

Product Details:

Item Number: 24374

Level: Basic

Authors: NATP Staff

Published: 2024

Format: Print - 64 pages

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Corresponding CPE Courses:

Get the e-book FREE when you purchase the corresponding 2024 course.