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.
This course features a live instructor and has been specifically designed for the NJCPA.
DESIGNED FOR
CPAs and tax practitioners who work with S corporation business clients and S corporation shareholders
BENEFITS
- 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
HIGHLIGHTS
- S corporation earnings layers
- Observations on earnings layers
- S corporation basis calculation
- IRC 351 transactions
- Four loss tiers
- Appreciated property distributions
PREREQUISITES
None
ADVANCE PREPARATION
None
ADDITIONAL NOTES