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. |
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
WithumSmith+Brown, PC
Partner
anitti@withum.com
(970) 429-8074
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.
CPAacademy.org (Sponsor Id#: 111889) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222