- NY Credits : 1.0
- TX Credits : 1.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 1.0
This course explains the basics of S corporation distributions, including the two different sets of rules for characterizing distributions, for S corporations with and without earnings and profits, and the special distribution and adjustment rules.
This course is most appropriate for the professional with detailed knowledge in S corporation taxation who may be at a mid-level position within an organization with operational or supervisory responsibilities, or both.
Upon successful completion of this course, the user should be able to:
identify the basic concepts involved in the calculation of shareholder's basis in the stock of an S corporation;
recognize the rules that apply to an S corporation with no accumulated earnings and profits for characterizing a distribution under IRC Sec. 1368(a) for income tax purposes;
recognize adjustments to AAA, including adjustments for new shares issued to a new shareholder and for the redemption of S corporation stock;
recognize the character of distributions by an S corporation with or without earnings and profits; and
determine the treatment of multiple distributions made during a tax year that exceed the balance of AAA.