||CPAs, EAs, return preparers, tax attorneys, and other tax professionals who advise S corporations and S shareholder-employee clients will benefit from this insightful webinar
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Learn the different tax consequences of S corp distributions and plan distributions for desired results! This two-hour webinar presented by nationally recognized tax expert Tony Nitti, CPA, M.S.T., guides you through the rules governing S corporation distributions and the process for determining the tax consequences of such distributions. Mr. Nitti will explain the three concepts every advisor must understand in order to properly determine the consequences of an S corporation distribution:
- Maintaining a shareholder's basis in the stock of the S corporation
- Determining whether the S corporation has any earnings and profits from prior C corporation years
- Computing the S corporation's Accumulated Adjustments Account
When an S corp distributes cash or property, the recipient shareholder may be required to recognize one or more of the following consequences: capital gain, a taxable dividend, or a simple tax-free reduction in stock basis. While the rules governing S corp distributions are not overly complex, they require understanding of several concepts that span Subchapters C and S of the Internal Revenue Code. Failure to understand these different concepts often results in adding needless complexity to determining the taxability of an S corp's distributions -- and even worse, may result in incorrect conclusions.
Once basic principles are established, Mr. Nitti will explain how to determine the taxability of a distribution made from an S corporation with prior C corporation earnings and profits (E&P) and, alternatively, how to determine the taxability of distributions made from an S corporation with prior C corporation E&P. Throughout the course, the goal will be to simplify the process and give you the tools necessary to efficiently address the needs of your clients. Through the use of illustrative examples, Mr. Nitti will point out traps and provide planning opportunities for efficiently making successful distributions from an S corporation.
All tax professionals in public practice or in industry who work with S corporations will benefit from this webinar. During the program, time will be provided for you to ask questions directly to Mr. Nitti.
- Gain a practical understanding of how to determine the taxability of distributions for S corporations
- Identify planning opportunities for making tax-efficient distributions
- Explain when an S corporation may prefer to make taxable dividends
- The different tax consequences that may result from an S corporation distribution
- Why a difference exists between the taxability of distributions for C and S corporations
- The general rules for maintaining a shareholder's basis in S corporation stock
- How a shareholder's basis in his S corporation stock impacts the taxability of an S corporation's distributions
- The concept of C corporation earnings and profits and how the existence of E&P may change the consequences of an S corporation's distribution
- When an S corporation's accumulated adjustments account is relevant in determining the taxability of a distribution
- Computing and adjusting the accumulated adjustmentsaccount
- Previously taxed income and the other adjustment account
- Use of post-year-end elections to make tax-efficient distributions