Tax Warrior Chronicles

"Back to Basis"- Basis Schedule of S Corporation

Posted on Fri, Jul 26, 2019

By: Febby A. Sugianto

 

Since the sweeping changes in the Tax Cuts and Jobs Act of 2017 went into effect, many businesses have rethought how they are structured. S Corporations have a certain appeal and may be a good fit for some. Today, we’ll help you understand the importance of tracking your basis in an S Corporation.

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Tax Implications of Renting Your Second Home

Posted on Mon, Mar 09, 2015

If you own a second property, especially in attractive tourist destinations like a beach or ski resort, you may consider renting out the property to defray the costs of ownership.  There are a few tax considerations to know of before you purchase an investment property or convert an old residence. Below is a summary of the treatment of income, expenses, depreciation, and basis considerations of your second residence.

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S-Corp Stock Basis & Relieved Debt

Posted on Thu, Mar 13, 2014

In a recent U.S. Tax Court case, it was concluded that an individual had to reduce their basis in S-corporation stock to reflect a reduction of debt he owed the company used to finance his stock purchase. The court ultimately looked to the economic reality of the purchase transaction and adjusted the taxpayer’s basis in his stock, disallowing an approximately $1.5 million loss the taxpayer claimed in 2005 in favor of an approximately $1.7 million gain. 

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S Corp Shareholders Not Entitled to Basis for Guaranteeing Corporation Loans

Posted on Tue, Oct 29, 2013

There was a recent Tax Court Memorandum (T.C. Memo 2013-151) addressing S Corporation basis limitation (issue #2) of S-Corporation owners.

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Statute of Limitations Not Extended by Overstated Basis

Posted on Tue, May 01, 2012

Good news for S-Corporation owners who have sold property for large gains and possibly over-stated their basis in that property. In a case that has been going on for the better part of the last decade, the owners of Home Concrete & Supply, LLC (an S-Corporation) have won a victory over the IRS.

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