S Corporations: Distributions, Stock Basis and Loss Limitations Webinar

• 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 same taxable year
• Tax planning opportunities and strategies