Understanding S Corporation Taxation: Shareholder Basis, AAA, and Retained Earnings
Overview
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Even though they have been around for several years, the tax laws pertaining to S corporations remain some of the more difficult areas of the Internal Revenue Code. Given the rising popularity of S corporations, understanding how shareholder basis and the equity section of the balance sheet work together for tax purposes is imperative for nearly any tax practitioner. In this course, we will discuss this relationship. Using examples and illustrations, we will show how contributions, operating transactions, and distributions affect shareholder basis as well as equity.Highlights
S corporation earnings layers Observations on earnings layers S corporation basis calculation IRC 351 transactions Four loss tiers Appreciated property distributions
Prerequisites
None
Designed For
CPAs and tax practitioners who work with S corporation business clients and S corporation shareholders
Objectives
Recognize the formula for calculating S corporation shareholder basis Identify the items of income and deduction that are allocated to AAA, PTI, AE&P, and OAA Calculate the tax effects of a distribution on shareholder basis and AAA
Preparation
None
Leader(s):
Leader Bios
Doug Stives
Douglas received a Bachelor’s Degree in Accounting and an MBA from Lehigh University. He started his accounting career with Price Waterhouse and joined Curchin & Company in 1970. Stives is currently head of the Tax Department at Curchin & Company, one of the largest CPA firms in Central Jersey with a 27 member staff.
Stives is currently Chairman of the Tax Publications Task Force and a member of the Small Business Taxation Committee of the American Institute of CPAs. He is a frequent lecturer for several New Jersey organizations and serves as an instructor for various courses offered by the New Jersey Society of CPAs and the American Institute of CPAs. He has appeared on national and local television, including CNN, CNBC, PBS and all three major networks. Stives is quoted frequently in national publications, including The New York Times, The Wall Street Journal, Forbes, Fortune and USA Today. In 1989-90 he was President of the 13,000 member New Jersey Society of CPAs. In 1993 Stives was a member of Governor Whitman’s Transition Team.
Non-Member Price $120.00
Member Price $99.00