Handbook for Mastering Basis, Distributions, and Loss Limitation Issues for S Corporations, LLCs, an

Get practical applications for basis and distribution concepts when dealing with flow-through business entities. Review what affects basis and how to treat distributions.
Highlights

• Coverage of recent tax acts and new legislation
• Section 179 limitations affecting basis and how the tax-benefit rule is applied
• Basis implications of personal assets converted to business use
• Calculating basis of inherited qualified and joint tenancy property
• S corporations: Recent IRS regulations regarding open debt; calculating basis; worksheets; effect of stock basis, debt basis, and the IRS’s recent focus on at-risk basis for shareholders; how AAA applies or doesn’t apply; complex basis ordering rules and special elections; loss limitation rules; taxable dividend; distributions of cash and property; and post-termination transition rules
• LLCs and partnerships: Rules of Section 704; calculating basis under Section 704 and for at-risk under Section 465; how recourse, nonrecourse, and qualified nonrecourse debt can create significantly different tax results; difference between basis and at-risk basis; Section 754 step-up in basis rules; the economic effect equivalence test or dumb but lucky rule; and complex rules of distribution of cash versus property and planning strategies