Distributions from S Corporations to Shareholders: Tax Rules, Issues and Solutions

A Live Two-Hour Webinar from CCH

Tuesday, August 2, 2011 - 1 PM Eastern; Noon Central; 11 AM Mountain; 10 AM Pacific

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Learn the How to Handle S Corp Distribution Tax Issues
papers on a desk top
Generally, S corporation distributions are treated as a nontaxable return of the shareholder's basis in the corporation stock. However, in certain cases, part of the distributions may be taxable as a dividend, or as a long-term or short-term capital gain, or as both. Determining the tax consequences of an S corporation's distributions to its shareholders requires a combination of corporate- and shareholder-level accounting. First, the corporation must determine the source of the distribution and report this information to its shareholders. Second, the shareholders must determine whether non-dividend distributions should be treated as a tax-free return of stock basis or as taxable gain from the sale or exchange of stock. In addition, two sets of rules determine the tax treatment of distributions to S corporation shareholders. One set applies if the S corporation making the distribution has no accumulated earnings and profits, and the other set applies if the S corporation possesses them. These two sets of rules provide different steps to be taken to determine the tax treatment of cash and other property distributions to shareholders.

Presented by S corporation guru, Robert W. Jamison, Ph.D., CPA, this two-hour webinar will provide a practical review of the tax treatment of S corporation distributions and help you develop the skills necessary to work out reasonable solutions to common S corporation distribution situations. When Subchapter S is silent, the rules of Subchapter C govern. As important as the distribution rules of Subchapter S may be, they do not encompass all of the problems that an S corporation may face. Consequently, Professor Jamison, the author of the S Corporation Taxation treatise published by CCH, will also refer to the relevant Subchapter C rules during his discussion to help you fully understand the tax treatment of a distribution by an S corporation.

All professionals in public practice and in industry involved with S corporation tax planning and compliance matters will benefit from this helpful seminar. Course materials will include a comprehensive and detailed reference materials prepared by Professor Jamison that will serve as a handy desk reference for future study and review. These materials will include valuable appendix resources - Basis Ordering Rules with Nondeductible Expenses; Ordering of Losses, Deductions and Nondeductible Expenses; and Basis Rules: Excess Losses and Charitable Contributions. Time will be provided for you to ask questions directly to our distinguished presenter via phone or e-mail during the program.

Program Topics
  • Distribution Rules in General
    • Distributions of Cash and Property by C Corporations
    • Distributions of Cash and Property by S Corporations
  • Corporations with No Accumulated Earnings and Profits
    • Stock Basis Governs
    • Distributions in Excess of Basis
    • Adjustments to Basis
  • Corporations with Accumulated Earnings and Profits
    • Relationship of AAA to Shareholder Basis and Pass Through
    • Reconciliation of Basis Adjustments to the AAA
  • Property Distributions
    • C Corporation Property Distribution Rules
    • Adaptations to S Corporations
    • Distributions of Gain Property
    • Distributions of Loss Property
  • Elections with Respect to Distributions
    • Election to Bypass AAA
    • Deemed Dividend Election
  • Constructive Distributions: Pitfalls and Windfalls

Learning Objectives

  • Gain practical understanding of fundamental S corporation distribution concepts and rules
  • Understand the most common distribution-related problems
  • Discuss the potential opportunities available to taxpayers to avoid distribution problems

Who Should Attend?

Public practice tax partners, managers, and staff; CPAs; enrolled agents; tax return preparers; tax attorneys; and other business and financial advisors working with S corporations and S shareholder clients; industry tax staff responsible for S corporation tax compliance and planning matters


Register today for this convenient program on Tuesday, August 2 at 1 PM Eastern, Noon Central; 11 AM Mountain; 10 AM Pacific.

About the Speaker:

Robert Jamison Robert W. Jamison, Ph.D., CPA

Robert Jamison is Professor of Accounting at Indiana University in Indianapolis. His principal teaching activities are concentrated in Master's Degree Taxation Courses. He specializes in taxation of closely held businesses, primarily S corporations. In addition to his university responsibilities, he is the author of S Corporation Taxation. Mr. Jamison is a contributing author of the Cengage Taxation Textbook Series and is a frequent chapter author for the Land Grant University Tax Education Foundation, Inc. National Income Tax Workbook. His professional experience has included employment with Arthur Young, Ernst & Young, San Diego State University, Portland State University, University of Illinois, and Ohio University, where he was Director of the School of Accountancy. Mr. Jamison's articles have appeared in Practical Tax Strategies, The Tax Adviser, Journal of Legal Tax Research, Journal of Pass-Through Entities, Journal of Accountancy, and various other publications. He has taught many professional education programs for national and local accounting firms, the AICPA, and various universities. He received his Ph.D. in Accounting from The University of Texas at Austin. He earned an M.B.A. from Portland State University, and he has a bachelor's degree in Economics from DePauw University.

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Practice Development Tip! Invite colleagues, business referral sources, clients and prospects to your office to listen in and participate on this seminar with you. They'll appreciate your invitation to hear directly about this important topic.

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Earn CPE Credit
  • Two hours CPE credit. One free CPE certificate for one person is provided with each site registration. CPE certificates are available for $25 each for each additional person wishing to receive CPE credit for their participation
  • Course Level: Intermediate
  • Prerequisite: Basic knowledge of federal taxation of S corporations
  • NASBA Field of Study: Taxes
  • CFP Credits: This course has been submitted for registration with the CFP Board
  • Learn More About CCH’s NASBA Registration
Special Gift

Firms registering for this seminar will receive as a bonus the following publication: A complimentary gift copy of CCH's Journal of Passthrough Entities

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If you are unable to attend this upcoming event and would like to order a recording—or if you would like to order recordings of past CCH Seminars, please visit the CCH Seminar Archive Library today.
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  • Site License: $249 — Registration includes one internet connection and one telephone connection at one location, one master set of handouts (with permission to make additional copies for the participants at your location), an unlimited number of people in one listening room can participate, and one seminar bonus publication per registered site.  Each Site License registration includes one free CPE certificate for one person at your site. Additional CPE certificates are available for $25 each for each additional person wishing to receive CPE credit for their participation.
  • CD Recording: $249 — The CD includes an audio recording of the event and handout materials in PDF format. Includes copy of seminar bonus publication with purchase. Available one week after the live seminar event. (Note: CPE credit is not available for the CD version of the presentation.)
  • Site License and CD Recording Package: $349 — This specially-priced package provides you with the Site License access to the live seminar event AND the CD Recording.
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Register Today for Only $249 Per Site and Have an Unlimited Number of Users Participate!

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