Surgent's Tax Loss Limitations Imposed on Individuals and Pass-through Entities

Overview

Tax practitioners advising their business clients must be fully informed regarding the multiple loss limitation provisions that apply to individuals conducting businesses and pass-through entities. This program covers the loss limitation rules that tax practitioners must know in order to advise their individual and pass-through entity clients fully and adequately as to when and if a loss limitation applies. The loss limitations discussed in this program start with an introductory discussion of hobby loss rules and graduate to a more substantive discussion of the remaining loss limitations: basis limits, at-risk rules, passive loss limits, excess business loss limits, net operating losses, and the Section 163(j) interest limitation. Knowing when loss limits apply is essential for any tax practitioner. This program will put you in a position to advise clients fully and intelligently regarding each of the loss limits.

Prerequisites

None

Objectives

• Recognize the impact of partner/S corporation’s shareholder basis on the ability to take losses
• Advise clients regarding the taking of losses from pass-through entities

Highlights

• How to calculate a partner or S corporation shareholder’s basis
• Form 7203 and an S corporation shareholder’s basis
• The at risk basis rules and Form 6198
• The passive activity loss limits
• The Section 461(l) loss rule
• The net operating loss limitation rules
• The Section 163(j) business interest limitation