Course

Four Tiers of Loss Limitations: A Guide to the New Rules for Pass-Through Entities - Virtual Only

View All Professional Development

Event Details

Wednesday, October 28, 2020

8:00am – 11:30am
(Registration: 7:30am)

Location

Facility Pending

Webcast Only

Field of Study

  • Taxes

CPE Credit

4 hours CPE credit

Course Code

FTL4-47

Instructor

Level of Knowledge

Intermediate

Vendor

Surgent CPE LLC

Prerequisites

Basic familiarity with loss allowance rules of pass-through entities.

Description

After much thought, MSCPA has decided to take all our CPE Classes till the end of December 2020 to virtual, this includes all conference. The risk of COVID-19 is just too high and we would not want any of you to get sick at one of our classes. All materials will be electronic.

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.

Highlights

  • 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))

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

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.

View All Professional Development