Event Description

Many tax clients with losses from their S corporations, partnerships, and multiple-member LLCs treated as partnerships will want to use these losses to offset their other income from other sources. This program explains when, why, and how the at-risk rules apply to allow or to prevent the owner of a pass-through entity from taking a loss from a pass-through entity and using it to offset other income. This program is extremely helpful for anyone with pass-through entity clients.

Designed For

Any tax practitioner wishing to understand the at-risk rules and how they apply to losses allocated to the owners of pass-through entities

Objectives

Understand how a client determines his or her at-risk basis in his or her pass through entity Understand how the at-risk basis calculation differs from a regular basis calculation Calculate the amount of an investor’s annual at-risk basis Understand the structure of IRS Form 6198 and how it relates to calculating a taxpayer’s at-risk basis

Major Subjects

Basis and at-risk basis How to calculate the amount of annual at-risk basis Forms 6198 and 7203 When activities may be aggregated for at-risk purposes Qualified nonrecourse financing

Prerequisites

A basic understanding of the tax rules relating to partner basis and S corporation shareholder basis

Instructions

None