SCo: Loss Limitation for S Corporations (329)

General Description:

This course is designed to assist the participant in understanding the interaction of the different rules that may limit the ability of a shareholder to deduct his/her allocable share of loss from an S corporation, including basis limits, debt rules, passive activity loss rules, and at-risk rules.

Learning Objectives:

After completing this course the participant will be able to:

• Describe the amount of loss that is deductible under the basis rules, the character of the deductible loss, and how to report the K-1 items on a Form 7203.
• Identify when the at-risk rules might apply to limit the loss that is deductible.
• Recognize when the passive loss rules apply, including allocating losses on the Schedule K to trade or business losses, rental real estate losses, and other rental losses.
• Describe the tax effect of using the suspended losses when a shareholder disposes of his/her interest in the S corporation.
• Discuss the term "post-termination transition period," including converting an S ­corporation to a C corporation.
• Describe which losses may be used in the post-termination transition period.
• Describe the effect of making an election under Reg. §1.1367-1(g), which deals with the special ordering rules that apply to nondeductible expenses.
• Describe the self-charged interest rules.
• Explain the self-rental rules as they apply to the passive loss rules, strategies to avoid the 3.8% tax on net investment income, and the effect on the deduction under §199A.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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