If you have questions about this event, please call us at 952-831-2707.
Pass-through (tax reporting S Corporations and Partnerships) are the most popular choice of newly formed business entities. However, for years, taxpayers and their preparers have struggled to properly calculate, update, and maintain the pass-through entity owners' tax basis information in each investment. Calculating and accounting for tax basis as well as properly reporting the impact of operating and liquidating distributions for these entities is among the most frequently cited audit deficiencies. Taxpayers have also misapplied the tax rules when calculating the gain or loss from the sale of the interest. Recently, the IRS initiated enforcement initiatives designed to audit owners of pass-through entities regarding their calculations of tax basis and their tax treatment of distributions. This course will teach you how to properly account for both of these items for your individual clients that own an interest in either a partnership or an S-corporation. Learn how to both identify the most common mistakes and errors and how to report these items correctly before your client is audited. Formerly Titled: Basis Calculations & Distributions for Pass-Through Entity Owners: Comprehensive (Forms 1065 and 1120S)