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2023 March Solutions Room: S Corporation Basis Rules and Form 7203

2023 March Solutions Room: S Corporation Basis Rules and Form 7203
IRS Program #:  X9QQU-T-00942-23-O
CTEC #: 6257-CE-0128
CE: 1 IRS credit & 1 CTEC credit
Materials
Course Description
This webinar reviews the rules for the computation of shareholder basis in S corporation stock and indebtedness, how the allowable amounts of loss and deduction are determined in a year when there is a basis limitation, and the basis restoration rules that apply to shareholder loans. Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, will be reviewed with examples showing the form’s proper completion.

Learning Objectives
  • Properly determine a client’s initial basis in S corporation stock and in loans made to an S corporation.
  • Compute the adjustments to stock basis for items of income, loss, deduction, and distributions.
  • Compute the adjustments to loans made to the S corporation for allowable items of loss and deduction in excess of stock basis and how loan basis is subsequently restored.
  • Determine when gain must be reported for non-dividend distributions in excess of stock basis and determine the character and amount of gain reportable for repayments of reduced basis debt.
  • Properly compute the allowed items of loss and deduction in a year where basis limitations apply and how the election under Reg. § 1.1367-1(g) impacts the computation.
  • Know when Form 7203 is required to be filed and Properly complete Form 7203.
Presenters

Patrick Dimmit, EA, MST
Patrick D. Dimmitt retired as a Large Business & International case manager after more than 38 years with the Internal Revenue Service. He received his Master of Science in Taxation from Indiana University’sKelley School of Business in Indianapolis, where he currently teaches graduate courses in partnership and state and local taxation.
Continuing Education
This course qualifies for IRS Continuing Education Hours. NAEA reports IRS CE on a monthly basis. If you have not received your CE Hours in your IRS PTIN Account by the end of the month after receiving the certificate, please contact NAEA at education@naea.org. IRS Requirements for live webinars require at least 50 minute per hour attendance and answering 3 out of the 4 polling questions. For on-demand, you must watch the full video, answer the knowledge check, and pass the assessment with a score of 70% or above. No partial CE is offered.

Webinar Refund Policy
To request a refund, contact the NAEA education team via email at education@naea.org. An NAEA education team member will review the request for refund. If the refund request has been approved, the refund will be refunded on the same method of purchase. Live Webinars, also offered On-