Basis/Distributions For Pass-Through Entities: An IRS Hot


With the advent of the electronic matching of K-1 information with items on partners’ and S corporation shareholders’ returns, the IRS is scrutinizing more closely than ever the basis owners have and the transactions in which the computation of basis is required. This course addresses the rules used to determine basis for partnerships and S corporations, and puts the computation of basis in contexts that often come under scrutiny – loss limitations, distributions and sales of an interest, among others. Learn the crucial rules for computing the adjusted basis and the tax treatment of distributions of pass-through entities such as partnerships and S corporations. Focus on the computation of the basis and the at-risk amount for these entities. Become familiar with correct allocation of liabilities among partners, the types and amounts of income that can result from distributions and sales of interests, and the basis of assets distributed from pass-through entities.

Learning Objectives

* Compute the basis of a partnership interest or S corporation stockholding
* Determine the amount and the character of income or loss the partner or shareholder should recognize because of distributions of property or money
* Apply the basis, at-risk, and passive activity loss limitations to pass-through losses from partnerships, LLCs, and S corporations
* Evaluate the tax treatment of sales of either partnership interests or S corporation stock
* Adjust the basis of partnership or LLC property following certain distributions and transfers of interests in the entity

Major Topics

* Structuring cash and property distributions to avoid unexpected tax consequences
* Adjusting basis in partnership assets to save future taxes
* Measuring the gain or loss on the sale of an interest in a partnership or S corporation
* Minimizing recognition of ordinary income on sale of an interest
* Maximizing the amount of the pass-through losses deductible by the partner/shareholder

Course Level
CPE Field of Study
Patrick Kelley

Experience in business taxation

Advanced Preparation



Colorado Society Of CPAs, 7887 E. Belleview Ave, Suite 200, Englewood CO 80111

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Oct 31, 2012
8:30 am - 4:30 pm MDT
Colorado Society Of CPAs, 7887 E. Belleview Ave, Suite 200, Englewood CO 80111
Total CPE Credits
Patrick Kelley


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Basis/Distributions For Pass-Through Entities: An IRS Hot

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