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

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DESCRIPTION

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

* Analyze how basis in an ownership interest in a pass-thru 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

WHO SHOULD ATTEND

Experienced practitioners who desire a refresher on loss limitations and an analysis of the new rules, and inexperienced practitioners who desire to learn the basics of all four pass-thru loss limitations and their interactions in one course

REQUIRED KNOWLEDGE

Basic familiarity with loss allowance rules of pass-thru entities

ADVANCED PREP

None

Listing

Hickory Metro Convention Center and Visitors Bureau

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