Date: July 22nd , 2026

Time: 1pmET | 12pm CT | 11am MT | 10am PT

Duration: 120 minutes

Description:

Accurately calculating and maintaining shareholder basis remains one of the most technically challenging—and frequently misunderstood aspects of S corporation taxation. Yet shareholder basis is fundamental to determining whether losses are deductible, whether distributions are taxable, the tax treatment of shareholder loans, and the gain or loss recognized when stock is sold or otherwise disposed of. Even minor errors in basis calculations can result in disallowed losses, unexpected tax liabilities, amended returns, IRS examinations, and costly consequences for both practitioners and their clients.

As S corporations continue to be a preferred entity choice for closely held businesses, tax professionals are increasingly expected to navigate complex basis rules while providing proactive planning and advisory services. With evolving IRS scrutiny, changing ownership structures, shareholder debt transactions, and increasingly sophisticated tax planning strategies, understanding the mechanics of shareholder basis has become essential for preparing accurate returns and minimizing compliance risk.

This comprehensive intermediate-level webinar provides a detailed examination of the federal tax rules governing S corporation shareholder stock basis and debt basis under Subchapter S. Participants will learn how shareholder basis is initially established, increased and decreased over time, and properly tracked throughout the life of the investment. The session will explain the interaction between stock basis and debt basis, the ordering rules that govern annual basis adjustments, and the limitations on deducting pass-through losses.

Special emphasis will be placed on practical application through real-world scenarios involving shareholder loans, capital contributions, distributions, debt repayments, suspended losses, and basis restoration. Participants will also gain a deeper understanding of how basis affects common business transactions, including ownership changes, stock redemptions, liquidations, and transfers of S corporation interests. The webinar will address frequent practitioner mistakes, documentation requirements, IRS audit considerations, and best practices for maintaining accurate basis schedules year after year.

Beyond technical compliance, the course highlights strategic tax planning opportunities that enable practitioners to better advise shareholders on preserving loss deductions, structuring capital contributions and loans, managing distributions, and avoiding unintended tax consequences. Attendees will leave with practical tools and methodologies they can immediately implement to improve return accuracy, reduce audit exposure, and confidently address complex shareholder basis questions.

Whether you prepare Forms 1120-S, review shareholder basis schedules, or advise closely held businesses on tax planning, this webinar delivers the technical knowledge and practical guidance needed to confidently calculate shareholder basis, comply with IRS requirements, and provide higher-value advisory services to S corporation clients.

Topics Covered:

• Establishing initial shareholder stock basis.
• Calculating annual basis increases and decreases.
• Stock basis versus debt basis.
• Shareholder loans and bona fide debt requirements.
• Capital contributions and additional paid-in capital.
• Income, deductions, credits, and tax-exempt income adjustments.
• Cash and property distributions.
• Loss limitation rules and suspended losses.
• Ordering rules for shareholder basis adjustments.
• The Accumulated Adjustments Account (AAA) and its interaction with distributions,
• Basis implications of stock sales, redemptions, ownership changes, and liquidations.
• Documentation, recordkeeping, and IRS examination considerations.
• Common practitioner errors and best practices for compliance.
• Tax planning strategies to maximize shareholder tax benefits while maintaining compliance.

Learning Objectives:

• Explain the importance of shareholder stock and debt basis under Subchapter S.
• Calculate initial shareholder stock basis and annual basis adjustments resulting from income, losses, deductions, contributions, and distributions.
• Differentiate between stock basis and debt basis and determine when shareholder loans qualify as bona fide indebtedness.
• Apply the ordering rules governing basis adjustments and loss limitations.
• Determine the tax consequences of shareholder distributions based on available basis.
• Analyze the impact of shareholder basis on common corporate transactions, including stock dispositions, ownership changes, and debt repayments.
• Identify common compliance errors that lead to IRS adjustments and implement best practices for maintaining accurate basis records.
• Apply practical planning strategies that help clients maximize allowable deductions while minimizing audit risk and unexpected tax consequences.

Credits and Other information:

• Recommended CPE credit – 2.0
• Recommended field of study – Taxes
• Session Prerequisites and preparation: None
• Session learning level: Basic
• Location: Virtual/Online
• Delivery method: Group Internet Based
• Attendance Requirement:  Yes
• Session Duration: 120 minutes

Who Should Attend:

• CPA
• Enrolled Agents (EAs)
• Tax Professionals
• Attorneys
• Other Tax Preparers
• Finance professionals
• Financial planners

About Our Speaker:

Mark Ribas, CPA

Mark is a highly experienced tax professional, educator, and speaker with more than four decades of expertise in federal taxation, tax compliance, and accounting. He earned a Bachelor of Science in Accounting from Fairmont State College and began a distinguished 38-year career with the Internal Revenue Service (IRS), where he served as an Internal Revenue Agent conducting income tax examinations for individuals, businesses, corporations, and partnerships.

During the final decade of his IRS career, Mark was a member of the Large Business and International (LB&I) Division, specializing in the examination of large corporations and complex partnership tax returns. His extensive experience with IRS examinations, federal tax regulations, and corporate tax compliance provides him with unique insights into the technical and practical aspects of today’s tax environment.

Following his retirement from the IRS, Mark established a successful CPA practice in Bridgeport, West Virginia, where he provides tax preparation, consulting, and advisory services to businesses and tax professionals throughout the Northeastern United States. He also serves as an expert witness in both civil litigation and tax-related matters, leveraging his decades of experience to provide authoritative analysis on complex tax issues.