S Corporation Debt: Planning Opportunities With Shareholder Loans to S Corps
Utilizing Debt Basis, Ordering Rules for Distributions and Repayments, Documenting Loans to Avoid IRS Challenge
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers with a comprehensive and practical guide to structuring S corporation shareholder debt transactions to ensure the debt will be respected for basis increase purposes. The panel will outline what shareholder debts will increase debt basis, describe best practices for documenting loan transactions between shareholder and S corporations, discuss repayment consequences, and detail debt basis calculations.
- Interplay between stock basis and debt basis
- Debt basis and repayment of shareholder loans contrasted with distributions
- Ordering rules for reduction and restoration of debt basis
- Special circumstances
- Planning opportunities
The panel will discuss these and other important topics:
- What specific loans from shareholders to S corporations serve to increase the shareholder’s debt basis?
- What are the ordering rules for distributions to shareholders who have debt basis but zero stock basis?
- Documentation requirement and best practices for supporting distributions against debt basis
- Rules governing restoration of debt basis
- Special rules when a shareholder has more than one loan to the S corporation
- Planning opportunities involving shareholder loans to S corporations
Mark Minassian, CPA
Mr. Minassian has extensive experience in working on tax issues for individuals, corporations, partnerships and trusts... | Read More
Mr. Minassian has extensive experience in working on tax issues for individuals, corporations, partnerships and trusts with an emphasis on the real estate industry. Prior to joining the firm, he worked in the Economic and Financial Consulting Group at Arthur Andersen in Boston and in the tax department of Ercolini & Company, a regional accounting firm in Boston. He has experience in many accounting and business functions including tax and estate planning, financial statement audits, real estate development, forensic accounting, business valuations and turnaround consulting for bankrupt and troubled businessesClose
Mr. Perez specializes in preparing tax returns, tax planning, research and representing clients before the IRS. He... | Read More
Mr. Perez specializes in preparing tax returns, tax planning, research and representing clients before the IRS. He advises clients on tax savings regarding tax incentives for working outside the US, immigrating to and emigrating from the US, buying or selling real estate and the tax impact of incentive stock options, restricted stock, and employee stock purchase plan transactions. He is proficient in preparing individual and business tax returns, international tax forms and schedules, and in reporting partial asset dispositions. He is a frequent author on tax topics.Close