S Corporations: Distributions, Stock Basis and Loss Limitations Webcast | 4173331B

Date :
November 27, 2017 10:00 AM - 12:00 PM
Location :
Webcast
Facility :
Webcast Rebroadcast
Level of Difficulty :
Overview
Member Price :
70
Nonmember Price :
94
CPE Credits :
CPE 2.00, MCLE 1.50
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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 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 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 distribution in same taxable year
  • Tax planning opportunities and strategies

Advanced Prep:

None.

Misc. Information:

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Level of Difficulty:
Overview
Field of Interest:
Taxes
Prerequisites:

Understanding the basics of taxation of corporations, S corporations and partnerships.

Designed For:

CPAs and attorneys with at least two years of experience advising privately owned businesses.

Instructors

John G McWilliams, CPA, Esq.

John McWilliams, CPA, Esq. is professor of accounting at Golden Gate University. Previously he was a professor of accounting at San Francisco State University. He began his career as a tax adviser with a Big Four CPA firm. For more than 30 years, while teaching, he has been a tax adviser to lawyers and CPAs regarding the tax matters of their clients. His areas of expertise include tax issues related to buying and selling privately-held businesses, financially-troubled businesses, business restructuring and reorganization, and ownership succession to employees or family members.

McWilliams has been active in CalCPA, having served as president of the San Francisco Chapter, chair of the Financial Literacy Initiative, member of the CalCPA Board of Directors serving as Vice Chair, and member of the Accounting Education Committee. He has served as a California representative to the AICPA Council, and as a member of two AICPA Tax Division Technical Resource Panels (Corporations, and Shareholders and Partnerships). McWilliams is the original author of two chapters of the CCH Expert Treatise Library: “Federal Taxation of Corporations,” and “Shareholders.”

No Agenda or Materials posted.