Four Tiers of Loss Limitations: A Guide to the New Rules for Pass-Through Entities -AM Sess (FTL419)
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Owners of S corporations and partnerships are subject to numerous limitations on pass-through losses, each with unique rules, applications, and complexities. With the increase in popularity of pass-through business entities, it is essential for CPAs to understand the complexities and interactions of these pass-through loss limitations.

 Export to Your Calendar 11/25/2019
When: November 25, 2019
8:30 AM until 12:00 PM
Where: Doubletree by Hilton Lafayette
1521 W. Pinhook Road
Lafayette, Louisiana  70508
United States
Presenter: Pam Davis


Online registration is available until: 11/25/2019
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Acronym FTL419
CPE 4 hours
Vendor Surgent
Category
Taxation
Level Intermediate
Yellow Book? No
Registration Early Bird Standard
Members* $179 $229
CPA Non-Members $279 $329
The Early Bird rate is good through 11/10.

*The member rate applies to LCPA members, other state CPA society members, and non-CPA staff of LCPA members. To register online, use the ‘Register’ button above. To register by phone, call the LCPA Member Service Center at 800.288.5272 or 504.464.1040, Monday through Friday, 8am to 5pm.

Texas CPAs: Our Texas State Board of Public Accountancy Sponsor number is #010423.

Course Description
Owners of S corporations and partnerships are subject to numerous limitations on pass-through losses, each with unique rules, applications, and complexities. With the increase in popularity of pass-through business entities, it is essential for CPAs to understand the complexities and interactions of these pass-through loss limitations.

Objectives

  • Analyze how basis in an ownership interest in a pass-through entity is established
  • Discuss how activity of the entity, distributions, and optional adjustments increase or decrease basis
  • Discuss when basis is “at-risk” under §465, and the resulting loss disallowance and carryforward related to basis that is not at-risk
  • Define passive activities under §469 and exceptions to the passive loss rules
  • Discuss when and how aggregation of activities should be used to avoid the passive loss rules
  • Analyze new §461(l) created by the Tax Cuts and Jobs Act of 2017 and understand the limitation calculation and resulting carryforward
  • Analyze the hierarchy of the loss limitations with examples of the application of the four tiers of losses and how they interact

Major Topics

  • Tier 1: Basis limitations for S corporation shareholders and partners
  • Tier 2: §465 at-risk limitations for S corporation shareholders and partners, including the impact of debt, indemnities, guarantees, and shareholder/partner agreements
  • Tier 3: §469 passive loss limitations and exceptions to the limitations
  • Tier 4: The new excess business loss limitation of the Tax Cuts and Jobs Act of 2017 (new §461(l))

Designed For: Experienced practitioners who desire a refresher on loss limitations and an analysis of the new rules. Inexperienced practitioners who desire to learn the basics of all four pass-through loss limitations and their interactions in one course.

Prerequisite: Basic familiarity with loss allowance rules of pass-through entities