Webinar

S Corporations: Distributions, Stock Basis and Loss Limitations

---

Making the S-election avoids double taxation for corporate operations after the election is effective. Consider the special rules related to adjusting the stock-adjusted basis, distributions and loss limitations. Rules surrounding the S corporation election are necessary to accomplish the single level of tax at the shareholder level. Evaluate the details of the adjustments to the stock basis. Cover descriptions and illustrations regarding calculating the "accumulated adjustment account" (AAA) and determining whether a distribution is from AAA. Loss limitation rules will be explained and illustrated, focusing on complications arising when distributions and losses occur in the same taxable year. Also, take into account the tax considerations of losses, reducing the adjusted basis in shareholder loans. Identify and evaluate tax planning opportunities and strategies.

Major subjects

• Details of the stock basis adjustments when an S election is effective
• Rules that characterize distributions to S corporation shareholders either as potential stock basis reductions or dividend income
• Definition of "accumulated adjustment account" (AAA)
• Special rule when there is a "net negative adjustment"
• The rule limiting losses to stock and shareholder loans to the corporation
• The tax complications related to using shareholder loans to the corporation to deduct losses
• The basis adjustment ordering rules when there are losses and distributions in the same taxable year
• Tax planning opportunities and strategies

Learning objectives

• Recognize the adjustments to stock basis rules
• Characterize the tax treatment of a distribution based on the ability to determine the balance in the accumulated adjustment account (AAA)
• Apply the loss limitation rules considering both stock and debt basis
• Identify and evaluate tax planning opportunities and strategies

Who should take this program?

• CPAs and attorneys.

Pricing

Our records indicate you are a nonmember. If you register, you will be charged $119.00 (Standard Nonmember Fee). Members: Please log in to receive member fee.

---

Related programs

Dec. 10, 2024 | Surgent's Advanced Critical Tax Issues for S Corporations | Webinar

Dec. 10, 2024 | S Corporations: Calculating Shareholder Basis | Webinar

Dec. 10, 2024 | S Corporation Essentials: Review and Update | Webinar

Dec. 10, 2024 | S Corporations: How to Calculate Shareholder Basis | Webinar

Dec. 10, 2024 | Comprehensive S Corporation Taxation Form 1120S | Webinar

---

Related products

Surgent's Advanced Critical Tax Issues for S Corporations | Self-Study (Downloadable PDF)

Surgent's Advanced Critical Tax Issues for S Corporations | Self-Study (On-Demand)

Surgent's Guide to Calculating S Corporations Shareholder Stock and Loan Basis | Self-Study (On-Demand)

Surgent's S Corporations Taxation: Advanced Issues | Self-Study (Downloadable PDF)

Surgent's S Corporations Taxation: Advanced Issues | Self-Study (On-Demand)

---