Basis/Distributions for Pass-Through Entities: Simplifying the
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
• 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
• Maximizing the amount of the pass-through losses deductible
by the partner/shareholder
When you complete this course you will be able to:
• Compute the basis of a partnership interest or S
• 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 passthrough 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.
Requisite Knowledge: Experience in business taxation
Speaker: Pamela Davis-Vaughn
Field of Study: Taxes
CPE Credits: 8
Yellow Book: No