Calculating S Corp Stock and Debt Basis: Avoiding Loss Limitations and Excess Distributions

A live 110-minute CPE webinar with interactive Q&A

Wednesday, August 16, 2017
1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, July 28, 2017

This webinar will provide tax professionals and advisers with the tools and understanding to correctly calculate S corp shareholders’ stock basis and debt basis and to effectively advise clients to avoid negative tax consequences due to loss limitations or excess distributions.


Calculating basis for S corporation shareholders is a time-consuming exercise for tax professionals. Accurately calculating basis is critical to determine how much a shareholder can withdraw in distributions without recognizing taxable income. When a shareholder takes more in distributions than his basis, the excess distribution is taxable as a capital gain.

Tracking basis is also important in determining whether shareholders can deduct S corporation losses on their personal returns. Taking losses in excess of basis can result in a disallowance of the pass-through loss and unexpected tax consequences.

Another challenge for the tax adviser is calculating S corp shareholder’s debt basis. A shareholder’s direct loan to the corporation creates debt basis that can be used to offset distribution gain or loss limitation rules. However, the use of debt basis must be tracked correctly and in accordance with debt basis rules, especially the new IRS regs on “back-to-back” loans.

Listen as our experienced panel of tax professionals provides a detailed roadmap of calculating stock basis, debt basis and the interrelation of distributions to basis, and outlines best practices to help S corp shareholders avoid unnecessary tax.


  1. Mechanics of calculating stock basis
  2. Items that increase stock basis
  3. Items that decrease stock basis
  4. Ordering rules
  5. Tracking basis against distributions to avoid current double taxation
  6. Loss limitation rules
  7. Debt basis rules and calculations
  8. Basis strategies for end of business


The panel will review these and other key issues:

  • Calculating and maintaining accurate S corp stock basis
  • Understanding basis items specific to S corporations
  • Applying loss limitation rules
  • Identifying and tracking debt basis
  • Calculating basis with a view toward sale, liquidation or redemption

Learning Objectives

Upon completing this webinar, you will be able to:

  • Ascertain how to correctly calculate S corporations shareholders’ stock and debt basis
  • Determine how much a shareholder can withdraw without recognizing taxable income
  • Distinguish items that increase or decrease a shareholder’s tax basis
  • Verify that debt basis is tracked in accordance with the debt basis rules
  • Establish that basis is tracked against distributions to avoid double taxation


Robert S. Barnett, Partner
Capell Barnett Matalon & Schoenfeld, Jericho, N.Y.

Mr. Barnett practice encompasses business and tax planning, estate planning and federal and state tax dispute resolution, among other engagements. He is a frequent writer on tax topics for professional journals.

Darren J. Mills, Esq., CPA
Mills Estate & Tax Law, Red Bank, N.J.

Mr. Mills has more than 20 years of experience advising both middle market companies and large multi-nationals regarding complex federal and international tax issues. He also advises both strategic and financial buyers in tax due diligence and structuring as well as providing sell-side due diligence/structuring. He has taught classes on S Corporations at Seton Hall University and the University of Baltimore School of Law.

Registration per Person for Live Event

Additional lines for this conference can be purchased at 25% off. For orders of five or more lines, further discounts will apply and will be automatically reflected in the cart.

Live Webinar $97.00

Includes Early Discount Savings of $50.00 (through 07/28/17)

Live Webinar & CPE Processing $132.00

Includes Live Webinar Early Discount Savings of $50.00 (through 07/28/17)

CPE per Person on Live Event

Continuing Professional Education credit processing is available for an additional fee. CPE processing must be ordered prior to the event. To qualify for CPE you may not listen via the telephone.

This program is eligible for 2.0 CPE credits.

  • Field of Study: Taxes.
  • Level of Knowledge: Intermediate.
  • Advance Preparation: None.
  • Teaching Method: Seminar/Lecture.
  • Delivery Method: Group-Internet (via computer).
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of verification codes announced throughout the presentation.
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific and detailed knowledge and understanding of S corporation stock basis rules, S corporation ownership structure, operating agreements and distributions; familiarity with the rules governing Accumulated Adjustment Accounts (AAA), and difference in treatment of debt between partnerships and S corporations; and basis calculations for S corporation shareholders according to IRC sections 1366 and 1367.

NOTE: CPE credit processing for all attendees must be ordered by 2pm Eastern the day of the program to receive a Certificate of Attendance within 24 hours.


Recorded Event

Includes full event recording plus handouts (available after live webinar).

Note: Self-study CPE and EA credits are not offered on recorded events.

Recorded Webinar Download $97.00
Available 48 hours after the live event

Includes Early Discount Savings of $50.00 (through 07/28/17)

How does this work?

Recorded Audio Download (MP3) $97.00
Available 24 hours after the live event

Includes Early Discount Savings of $50.00 (through 07/28/17)

How does this work?

DVD (Slide Presentation with Audio) $97.00 plus $9.45 S&H
Available ten business days after the live event

Includes Early Discount Savings of $50.00 (through 07/28/17)

How does this work?

Registration Plus Recorded Event

Best value!

Live Webinar & Webinar Download $144.00

Includes Special Savings of $150.00 (through 07/28/17)

Live Webinar & Audio Download $144.00

Includes Special Savings of $150.00 (through 07/28/17)

Live Webinar & DVD $144.00 plus $9.45 S&H

Includes Special Savings of $150.00 (through 07/28/17)


National Registry of CPE Sponsors

Strafford Publications, Inc. 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:

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Early Registration
Discount Deadline
July 28, 2017
(6 days)

or call 1-800-926-7926

Can't Attend the Live Program?

CPE Credit

Strafford is a NASBA CPE sponsor and our live webinars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.

or call 1-800-926-7926

EA Credit

Strafford is an IRS approved continuing education provider and this course is approved for 2 enrolled agent (EA) credit hours.

or call 1-800-926-7926

Customer Reviews

I liked the fact that there was more than one person presenting the material. It's nice to hear multiple perspectives.

Matt Bristow

Cover & Rossiter

The conference was technical, informative and presented at a good pace.

Krystal Ching


I appreciated the flow of the information offered and the ease at which I could follow the handouts.

Larry Bruck

WISS & Company

I liked the concentration on specific issues and examples.

Edita Rimalovsky

Komisar Brady & Co.

I purchased the conference a few minutes after it began and the customer service rep was very helpful and got me signed up and logged into the conference very quickly.

Joanna Johnston

Savas Greene & Company

or call 1-800-926-7926

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Strafford webinars are backed by our 100% Unconditional Money-Back Guarantee: if you are not satisfied with any of our products, simply let us know and get a full refund. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10. Complaints regarding this program can be submitted via the course evaluation found in the “Thank you” e-mail at the end of the course.