This program is designed to fulfill the California Board of Accountancy’s four-hour ethics education requirement.
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.
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 the same taxable year Tax planning opportunities and strategies
CPAs and attorneys.
Understanding the basics of taxation of individuals, corporations, S corporations and partnerships.