Stock Basis Calculation for Pass-Through Entities: Challenges for Tax Professionals

Tackling Complex Issues for S Corporations, LLCs and Partnerships

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, August 6, 2013

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Course Materials

This teleconference will provide tax pros and advisors with a review of the issues involved in calculating basis for owners of pass-through entities. The panel will discuss the adjustments needed to reflect increases to and reductions in the initial owner’s investment.


Calculating basis in investments is particularly complex because an owner’s investment in pass-through entities changes. Annual income, distributions and loans can all affect basis. Tax advisors must make adjustments by first increasing basis by income items before decreasing them by deduction and loss items.

Common basis increases to consider include capital contributions, ordinary income, investment income and gains. Tax advisors must also understand that decreases to basis should reflect Sect. 179 deductions, charitable contributions, non-deductible expenses and distributions, and loss items, among others.

Listen as our panel reviews the rules and offers guidance affecting a tax professional’s work on calculating basis for pass-through entities.



  1. S corp. basis issues
    1. Increases, decreases to basis
    2. Order of basis adjustments
    3. When to calculate basis
  2. Partnership basis calculation
    1. Partner's basis and partner's capital account
    2. Treatment of liabilities under Sect. 732
    3. Sect. 704(b) vs. stock basis
  3. Partnership and LLC at-risk basis
    1. Debt allocation issues


The panel will analyze stock basis topics such as:

  • What are the key challenges for tax professionals when calculating basis for pass-through entities?
  • What increases and decreases should be considered for the basis calculation?
  • Why is the order of calculating increases and decreases important?
  • What are the differences in basis calculation if an entity operates as a Subchapter S, an LLC or a partnership?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Frank Gariepy
Frank Gariepy

Eide Bailly

As Director of Tax Services in the firm's national tax office, he has more than 30 years experience in public...  |  Read More

Shauna Shafer
Shauna Shafer

Tax Manager
Eide Bailly

She has more than nine years of public accounting experience for clients including medical groups, franchisees,...  |  Read More

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