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Understanding S Corporation Taxation: Shareholder Basis, AAA, and Retained Earnings (SCB2)

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Live Webinar SELECT STARTING AT $99 (9 dates)

Credits: 2

Qualifies For: IRS CPE

Instructor(s): Dave Peters, CPA, CFP, CLU, CPCU, MST, MBA

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Understanding S Corporation Taxation: Shareholder Basis, AAA, and Retained Earnings (SCB2)

  • Customer Rating
    Reviews Not Available.
  • Field of Study
    Taxes
  • Level
    Basic
  • Credits
    2
  • Qualifies for

    IRS CPE

Overview

Even though they have been around for several years, the tax laws pertaining to S corporations remain some of the more difficult areas of the Internal Revenue Code. Given the rising popularity of S corporations, understanding how shareholder basis and the equity section of the balance sheet work together for tax purposes is imperative for nearly any tax practitioner. In this course, we will discuss this relationship. Using examples and illustrations, we will show how contributions, operating transactions, and distributions affect shareholder basis as well as equity.

Major Topics:

  • S corporation earnings layers
  • Observations on earnings layers
  • S corporation basis calculation
  • IRC 351 transactions
  • Four loss tiers
  • Appreciated property distributions

Learning Objectives

  • Recognize the formula for calculating S corporation shareholder basis
  • Identify the items of income and deduction that are allocated to AAA, PTI, AE&P, and OAA
  • Calculate the tax effects of a distribution on shareholder basis and AAA

Designed for:

CPAs and tax practitioners who work with S corporation business clients and S corporation shareholders

Prerequisite:

None

Advanced Preparation:

None

Interested in bringing this course into your firm?

PRIVATE WEBINARS AND LIVE ON-SITE COURSES ARE AVAILABLE. LEARN MORE.
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