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DETERMINING THE TAXABILITY OF S CORPORATION DISTRIBUTIONS

CPE Processing Fee$20.00
Webinar TranscriptionN/A
Presentation Length Hour(s)2.0 hours
CPE Credits 2.0 hours
Subject Area 2.0 - Taxes (Federal Tax)
CE Credits 2.0 hours
Course Id# - HURS9-T-00004-15-O
Course LevelBasic
Instructional MethodQAS Self-Study
PrerequisitesNone
Advance PreparationNone
Recorded DateOctober 7, 2015
Date OfferedDecember 1, 2015
Expiration DateDecember 1, 2016
Course Description

Determining the taxability of distributions from S corporations is one of the rare issues that tax advisors make more complicated than it really is. In order to make quick work of the distribution rules, an advisor must have a firm understanding of three attributes: shareholder stock basis, earnings & profits, and the accumulated adjustments account. Once the necessary background is provided, determining whether a distribution results in a tax-free return of basis, dividend income, or capital gain is a fairly straightforward process.

This class will navigate the distribution rules of Section 1368.

Self-Study Course Instructions:

FOR DOCUMENT-BASED COURSES

Download the course document(s) (below) and follow prompts contained in the document.



FOR RECORDED COURSES WITH VIDEO

Download any course document(s) (below) which may include handouts, glossary, transcripts, etc. Follow any prompts contained in the documents to help you complete the course. Most documents are searchable.

Play the recording, noting the sectional guides indicating where topics on the agenda are covered and the prompts to pause video playback to respond to a review question (located below the video playback area). The timestamps for review questions are also noted below.

Upon completing the video and successfully answering all review questions, you will then take the final exam.

Learning Objectives

  • Understanding shareholder stock basis, earnings and profits, and the accumulated adjustments account

  • Determining the consequences of distributions made from an S corporation without earnings and profits

  • Understanding the impact of the post-termination transition period, PTI account, and OAA account

  • Identifying elections that may change the distribution ordering rules

Not logged
Handout Materials
Presentation Slides
Additional Materials
Supporting Documentation
Course Outline
Review Questions
Review Questions
QUESTION 1: 10:00 minutes
QUESTION 2: 29:00 minutes
QUESTION 3: 49:00 minutes
QUESTION 4: 1:13:00 minutes
QUESTION 5: 1:29:00 minutes
QUESTION 6: 1:41:00 minutes
Frequently Asked Questions
  • CPAacademy self-study courses are online.
  • The self-study format allows you to a) access the material online 24/7 and b) study at your own pace.
  • Per NASBA guidelines, you have one year from date of purchase to complete each program.
  • Complete your final exam at any time and get graded instantly. You can retake the exam at no additional charge (unlimited attempts).
  • Print your own certificate of completion on the spot upon passing the exam.
  • Grading policies: a) courses have a minimum passing score 70% b) test takers will not be provided feedback on failed exams.
  • Upon achieving a passing score, test takers will be notified of the correct answers to the questions missed.

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Tony is a tax partner based in our Aspen, Colorado office and is a certified public accountant in the states of New Jersey and Colorado. He has over ten years of accounting and tax experience, including working in the tax departments of Arthur Andersen LLP and Price Waterhouse LLP. Tony’s practice focuses primarily on corporate and partnership tax planning, with a special focus on the consolidated return regulations and the reorganization provisions, including the structuring of acquisitions, mergers, reorganizations, spin-offs and other restructuring transactions. Tony is the author of over a dozen feature articles published in the Tax Adviser and Taxes magazine, as well as treatises on consolidated returns for CCH and qualified subchapter S subsidiaries for RIA Checkpoint. Through his writing on Forbes.com, Tony has become a respected voice in the tax community. His opinions and commentary on important tax issues have been quoted in Bloomberg, CNN Money, and the BNA Daily Tax Report. Tony is a regular on the CPE circuit, teaching classes ranging from “S corporation Distributions,” “Reverse Acquisitions,” and “Earnings and Profits” for CCH to the federal tax update for Accountants Education Services. Tony earned a bachelor’s degree in accounting from The College of New Jersey and a master’s in taxation from the University of Denver Graduate Tax Program. He is a member of the American Institute of Certified Public Accountants (AICPA) the New Jersey Society of Certified Public Accountants (NJSCPA), and the Colorado Society of Certified Public Accountants (COCPA). Tony resides in Eagle County, CO.

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