Determining Basis for Partners and Shareholders: AAA vs. Capital Accounts, Debt-Financed Losses, Loans and Guarantees
Recording of a 110-minute CPE webinar with Q&A
This course will explain basis calculations for S corporations and partnerships. Our panel of tax professionals will compare and contrast debt-financed losses, AAA (accumulated adjustment account) and capital accounts, and basis restoration. The panel will provide examples of these complex calculations for tax practitioners working with flow-through entities.
Outline
- Basis overview
- AAA vs. capital accounts
- Annual operating increases and decreases to basis
- Notes payable and guarantees
- Loans from owners
- Debt-financed losses
- Distributions
- Basis restoration
- Planning techniques
- Recent cases
Benefits
The panel will cover these and other critical issues:
- Ordering rules for deducting losses from flow-through entities
- Caveats of decreases in debt basis
- Differences in entity-level debt and basis computations for LLCs and S corporations
- Strategies to increase basis for allowable losses
- How shareholder and partner loans, guarantees, and repayments impact basis calculations
Faculty
John T. Alfonsi, CPA
Managing Director
Cendrowski Corporate Advisors
Mr. Alfonsi has 25 years of tax consulting, business valuation, litigation support and forensic accounting experience.... | Read More
Mr. Alfonsi has 25 years of tax consulting, business valuation, litigation support and forensic accounting experience. In the tax planning and consulting arena, he works primarily with partnerships and with private equity, venture capital and hedge funds.
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Dean L. Surkin, JD, LLM
Professor (Adjunct)
Pace University Graduate School of Business
Mr. Surkin is an attorney engaged in private practice in the New York metropolitan area. He recently retired from the... | Read More
Mr. Surkin is an attorney engaged in private practice in the New York metropolitan area. He recently retired from the position of Tax Director at a regional CPA firm based in New York City. Prior to that, Mr. Surkin was a partner at Surkin & Handlin, a boutique firm that handled real estate and tax matters. He is a tax attorney with broad-based experience in tax planning and research, has litigated major cases in the fields of taxation, probate and general commercial matters, and has been peer-reviewed by Martindale-Hubbell. Mr. Surkin holds the highest rating for legal ability and ethical standards, AV. His published articles on tax law have appeared in peer-reviewed journals, practitioners’ journals, and the popular press. Mr. Surkin also writes science-fiction short stories about the adventures of his granddaughters and their dog visiting historic events in their uncle’s time machine (their uncle is also a dog) and serves on the Board of Directors of the Westchester Community Orchestra.
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