Determining Basis for Partners and Shareholders: AAA vs. Capital Accounts, Debt-Financed Losses, Loans and Guarantees
Recording of a 110-minute CPE webinar with Q&A
This course will explain basis calculations for S corporations and partnerships. Our panel of tax professionals will compare and contrast debt-financed losses, AAA (accumulated adjustment account) and capital accounts, and basis restoration. The panel will provide examples of these complex calculations for tax practitioners working with flow-through entities.
Outline
- Basis overview
- AAA vs. capital accounts
- Annual operating increases and decreases to basis
- Notes payable and guarantees
- Loans from owners
- Debt-financed losses
- Distributions
- Basis restoration
- PPP loans and forgiveness
- Planning techniques
- Recent cases
Benefits
The panel will cover these and other critical issues:
- Ordering rules for deducting losses from flow-through entities
- Caveats of decreases in debt basis
- Differences in entity-level debt and basis computations for LLCs and S corporations
- Strategies to increase basis for allowable losses
- How shareholder and partner loans, guarantees, and repayments impact basis calculations
Faculty
Gregory Bouchard
Director
Cornell Income Tax Schools
Mr. Bouchard is a Senior Extension Associate and Director of Cornell Income Tax Schools. These schools are attended... | Read More
Mr. Bouchard is a Senior Extension Associate and Director of Cornell Income Tax Schools. These schools are attended annually by over 800 tax practitioners throughout New York State. He is also a contributing author and reviewer for the National Income Tax Workbook produced by the Land Grant University Tax Education Foundation. This workbook is used nationally to conduct income tax schools for practitioners. Mr. Bouchard retired from full-time employment as Senior Vice President at Farm Credit East after working in their financial services for 37 years. He continued to be employed by Farm Credit East on a part-time basis as a Senior Business Consultant through 2016. In this capacity Mr. Bouchard worked with a number of farm operations on their tax, business succession, and estate planning activities. He conducts seminars and conferences on a wide range of high-level tax and business transfer planning topics in addition to providing training on the basics of farm taxation and recent developments in income, gift, and estate taxes. Mr. Bouchard holds a master’s degree in farm management and finance from Cornell University
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Professor Robert W. Jamison, CPA
Professor Emeritus of Accounting
Indiana University
Mr. Jamison is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His... | Read More
Mr. Jamison is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His principal area of specialization is S Corporations. He is the sole author of S Corporation Taxation, and co-author of Multistate Tax Guide to Pass-Through Entities, both of which are published annually by CCH, a Wolters Kluwer business. He is a regular contributor to Land Grant University Tax Education Foundation, Inc. National Income Tax Workbook and has contributed to Federal Tax Workshop. He presents advanced and update S Corporation seminars for various states' CPA societies and to other professional organizations. He is a member of the AICPA S Corporation Technical Resource Panel. He consults on S corporation and other business entity problems and has secured letter rulings from the IRS.
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