Webcast: S Corporations: Distributions, Stock Basis and Loss Limitations (XCSCDS117)
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Making the S election will accomplish the avoidance of double tax for the corporate operations after the election is effective. Consider the special rules related to adjusting the stock adjusted basis, distributions and loss limitations. These rules are necessary to accomplish the single level of tax at the shareholder level. Evaluate the details of the adjustments to stock basis. Cover descriptions and illustrations regarding the calculation of the "accumulated adjustment account" (AAA) and the

 Export to Your Calendar 7/24/2017
When: 07/24/2017
12:00 PM until 2:00 PM
Where: Webcast
CALCPA
4173331A
United States
Presenter: John G. McWilliams, CPA, JD


Online registration is available until: 7/22/2017
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Acronym XCSCDS117
CPE 2 hours
Vendor CalCPA
Category
Taxation
Level Overview
Prerequisite Understanding the basics of taxation of corporations, S corporations and partnerships.
Adv Prep None
Yellow Book? No
Designed for CPAs and attorneys with at least two years of experience advising privately owned businesses.
Registration
Member $60
CPA Non-Member $94

The Member rate applies to LCPA members, other state society members, and non-CPA staff of LCPA members. To register online, use the ‘Register’ button above. To register by phone, call the LCPA Member Service Center at 800.288.5272 or 504.464.1040, Monday through Friday, 8am to 5pm.

Course Description

Making the S election will accomplish the avoidance of double tax for the corporate operations after the election is effective. Consider the special rules related to adjusting the stock adjusted basis, distributions and loss limitations. These rules are necessary to accomplish the single level of tax at the shareholder level.

Evaluate the details of the adjustments to stock basis. Cover descriptions and illustrations regarding the calculation of the "accumulated adjustment account" (AAA) and the determination of whether a distribution is from AAA. The loss limitation rules will be explained and illustrated with special focus on complications arising when both 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.

Materials are provided as an ebook for this course.

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.
  • Determine the tax consequences of distributions made in the same year that there is a loss.
  • Identify and evaluate tax planning opportunities and strategies.

Major Topics

  • 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 distribution in same taxable year
  • Tax planning opportunities and strategies