IRS in the past directed S Corp shareholders to attach informal schedules (to their tax returns) to report their stock and debt basis. To report S Corp shareholder stock and debt basis for 2022, IRS demands we attach new Form 7203. Oddly, the new-fangled form need not be attached every time, just sometimes.

This newly updated course answers all of the questions listed below and more. Go ahead, take yourself a self-test below. And, if you don’t know the answer to any of these questions, we’ll answer them all for you.

How many of the following questions can you confidently answer? After completing this course, you will be able to answer all of these.

1. What changes did IRS make to Form 7203?
2. When must we attach new Form 7203 (and when are we spared)?
3. What must be reported on it?
4. How to reconstruct if starting basis numbers are unknown (or a huge historic mess)?
5. What must we, behind the scenes, know to compute stock and debt basis?
6. What is S Corp stock basis? How to compute it?
7. What is S Corp debt basis? How to compute it?
8. What’s at stake? Why does it matter/why does IRS care so much?
9. Consequences of not reporting at all (or not reporting correctly)?
10. What are the wrinkles, tricks and traps?
11. How/when to correctly allow losses and deductions to a shareholder?
12. How to handle different blocks of stock?
13. How to account for and track repayments of debt?
14. Consequences of repayment by S Corp of debt to shareholder?
15. Are open accounts ever treated as promissory notes? If so, when?
16. Do promissory notes really matter?
17. How do prior suspended losses interplay with current year tax?
18. Effect and timing of tax-exempt income (e.g., PPP loan forgiveness) on basis?
19. How is IRS using the all-new Form 7203 Instructions to take aggressive new positions not supported in the law? When might overrides be needed?
20. What planning is available?

“It is important to be correct.”  Teddy Roosevelt

How to brew up the best batch of S Corp shareholder stock (and debt) basis?

Take our newly revised course to find out.

Presenter: Bradley Burnett

Bradley Burnett, J.D., LL.M., is a practicing Colorado tax attorney with 39 years of tax practice experience.  His practice emphasis is on tax planning and tax controversy resolution.  He also prepares a handful of tax returns.

Mr. Burnett has delivered more than 3,000 presentations on U.S. tax law throughout all fifty U.S. states, Washington, D.C., the Bahamas, Italy, Greece, Turkey, and Canada. He has authored texts of 35 CPE courses.  He has appeared on television answering tax questions for call-in viewers of Denver NBC affiliate KUSA Channel 9.  Brad received the Illinois Society of CPAs Instructor Excellence Award for teaching in Chicago and five times has been the top-rated, most requested instructor for CPA Society annual tax conferences.

Burnett’s seminar style is to deliver the subject matter in briskly paced, enthusiastic and witty fashion.  His forte’ is the candid communication of practical ideas relating to tax law.

Host: Rick Telberg

• Founder and CEO CPA Trendlines, Bay Street Group
• Accounting Today Top 100
• CPA Practice Advisor Top 25

Host: Sandi Leyva

• Founder Accountant’s Accelerator, Leyva Learning, LLC
• CPA Practice Advisor Top 25
• Most Powerful Women in Accounting