January 27, 2023


2 Total CPE Credits


Webinar (CA): S Corporations: Distributions, Stock Basis and Loss Limitations

Learning Objectives

• 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

Major Topics

• 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

CPE Credits Available

Total CPE

Things to Know About This Course

Course Level

  • Overview


Understanding the basics of taxation of individuals, corporations, S corporations and partnerships.

Advanced Preparation

This webinar is produced by CalCPA. You will receive your login link/instructions and Certificate of Attendance directly from this third-party vendor. It is important that you review your COCPA confirmation for details on receiving your login instructions and COA from said vendor.

Intended Audience

CPAs and attorneys.


California CPA Education Foundation

This event has ended.