Course Description

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 both shareholder basis as well as equity.

Learning Objectives

  • Recognize the formula for calculating S-Corp 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.

Additional Required Materials

  • Level: Beginner

  • Field of Study: Taxes (NASBA), Tax Planning (CFP), Federal Taxation (IRS)

  • Who Should Attend: CPAs and tax practitioners who work with S-Corporation business clients and S-Corporation shareholders.

  • Required Knowledge: Basic understanding of flow-through entity taxation.

  • Advanced Prep: None

Instructor

CPA, CPCU, MST, MBA David Peters

David Peters is the Founder and Owner of Peters Tax Preparation & Consulting in Richmond, VA. He has over fourteen years of experience in financial services, including 3 years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer at Compare.com - a position he held for over three years. He is a national CPE Instructor/Discussion Leader for the AICPA, Surgent, and Kaplan. He regularly teaches courses in accounting, finance, insurance, and ethics throughout the United States. He holds four Masters degrees and contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures. He was also a co-author of the 2018 Virginia CPA Ethics course – a required course for all CPA’s licensed in the Commonwealth of Virginia.