Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
S corporations commonly make distributions to shareholders. Determining whether the distributions are taxable distributions or return of basis largely depends on shareholder basis. Additionally, it may be difficult to determine if a distribution is a loan, a loan repayment, a salary, or a distribution of income. This course will provide detailed training on how the intersection of these rules affects taxability of distributions of cash and property by an S corporation, illustrated with case studies.
Publication Date: March 2023
Designed For
Tax practitioners at all levels who provide advice and return preparation involving S corporations.
Topics Covered
- Rules regarding passthrough of S corporation items of income and deductions
- Additions to S corporation basis, including effects of S corporation liabilities
- Characterization of distributions as salary vs. distributions of income
- Loans between S corporation and shareholders
- Tax distributions
Learning Objectives
- Describe transactions and events that increase and decrease a shareholder's basis in S corporation stock
- Identify the difference in treatment between distributions of salary, S corporation income, and shareholder loans
- Recognize how to explain how tax distributions work, and how they affect future distributions of cash and property
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Jennifer Kowal
Jennifer Kowal, JD, has been a tax professor and the director of the graduate tax program at Loyola Law School in Los Angeles since 2003. Loyola’s graduate tax program offers an LL.M. in Taxation for attorneys and a Master in Tax Law for non-lawyers. Professor Kowal teaches courses in advanced income taxation, income tax timing issues, corporate taxation, and tax research, among others. Prior to teaching at Loyola, Professor Kowal taught in the International Tax Program at Harvard Law School.
She also practiced law with the firms of Irell & Manella in Los Angeles and Ropes & Gray in Boston, advising clients on the taxation of various business transactions, including cross-border, partnership and corporate structures. Professor Kowal holds a BS in Accounting with distinction from the University of Kansas, and a JD from UCLA School of Law, where she was a member of the Order of the Coif.