Participants will learn to identify and correct these and other critical basis miscalculations, equipping business and individual tax preparers with the tools to proactively assist affected clients. The course also addresses basis considerations for incoming and outgoing shareholders, partners, and LLC members, as well as basis implications when an entity distributes assets or winds down operations.

Course Topics Covered

• Overview of New Form 7203: S Corporation Shareholder Stock & Debt Basis Limits
• Part I – Stock Basis:
  • Calculating shareholder stock basis
  • Common basis issues arising from ERTC credits
  • Treatment of PPP loan forgiveness and other tax-exempt grants
  • Understanding stock blocks and their impact
  • Filing and managing multiple Form 7203s
  • Allocating pass-through items (income, losses, deductions, and nondeductible expenses) to stock basis
  • Reviewing official Instructions for Form 7203
• Part II – Debt Basis:
  • Calculating shareholder debt basis
  • Issues related to Section A: Amount of Debt
  • Compliance considerations and cautionary guidance for Form 1120-S preparers
  • Taxable repayments and debt compliance exposure
• Part III – Loss and Deduction Limitations:
  • Determining allowable loss and deduction items
  • Exploring potential compliance exposure from Form 7203 reporting
  • Reconstructing basis when records are incomplete
  • Understanding initial basis and ongoing adjustments for shareholders
• Additional Topics:
  • Handling basis for incoming or exiting shareholders, partners, and LLC members
  • Calculating basis in cases of asset contributions or distributions

Learning Objectives

• Understand the fundamentals of basis for S corporation shareholders, partners, and LLC members
• Identify specific transactions that can lead to basis miscalculations
• Apply best practices for correcting or reconstructing basis
• Accurately handle basis adjustments for contributions and distributions
• Recognize a tax preparer’s responsibilities and potential exposure related to basis compliance

Credits and Other information:

• Recommended CPE credit – 2.0
• Recommended field of study – Taxes
• Session Prerequisites and preparation: None
• Session learning level: Basic
• Location: Virtual/Online
• Delivery method: Group Internet Based
• Attendance Requirement:  Yes
• Session Duration: 120 minutes

Whether you’re a tax professional or financial advisor, this course equips you with the tools to maximize tax efficiency, avoid common pitfalls, and confidently navigate Form 709.

Who Will Benefit:

• CPA
• Enrolled Agents (EAs)
• Tax Professionals
• Attorneys
• Other Tax Preparers
• Finance professionals
• Financial planners

About Our Speaker

Jane Ryder, EA, CPA, is a nationwide professional educator.She writes and speaks on many income tax, business compliance, accounting, and tax representation topics.Jane has been providing tax preparation, accounting services, and tax collection resolution services since 1980.
She runs her San Diego CPA firm, Brass Tax Ryder Professional Group, Inc., and consults with colleagues on tax matters, audits, and business planning.