[jeff]

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Post by Another71.

[PasstheCPA7]

@ s2sylvir – Yeah. So, the corporation is taxed once at the corporate or entity level on taxable income. And then once the corp. makes a distribution to its shareholder, the shareholders are taxed on that dividend income.

For a Partnership, the partners are just taxed once and that is on their 1040 (which flows from Schedule K-1, to Schedule E, to Form 1040).

But, not sure what you're asking here?

[s2sylvir]

I guess nothing — Sounds like you got it.

BEC - PASS (79)
AUD - PASS (63, 71, 74, 74, 83)
REG - PASS (88)
FAR - PASS (58, 89)

Becker for all + FAR 10 Point Combo

[PasstheCPA7]

Thanks! You were a great help @ s2sylvir

[s2sylvir]

Aha… Idk if I really helped but you're welcome XD

BEC - PASS (79)
AUD - PASS (63, 71, 74, 74, 83)
REG - PASS (88)
FAR - PASS (58, 89)

Becker for all + FAR 10 Point Combo

[PasstheCPA7]

Hi guys,

When we talk about C-Corps, we know there are rules for Non-liquidating and liquidating distributions. On the other hand, if we talk about Partnerships, we also have rules for Non-liquidating and liquidating distributions.

However, my question is this: When we talk about S-Corps – how come we don't have any non-liquidating and liquidating distributions? In other words, I don't see this terminology being used for S-Corps. Am I missing something here or something?

Thanks.

[Gabe]

@pass: https://www.aicpa.org/publications/taxadviser/2014/january/pages/nitti_jan2014.aspx

CPA, CFE
CISA- Experience will be completed by August 2016

[NJPRU]

Although I agree that nonliquidating and liquating is not heavily covered for S Corps, I think becker does a good job at covering the most essential ideas and practices of an S Corporation. Based on what I've read in Becker, it looks like they cover strictly what is needed to pass. With that being said, I would just concentrate on what the shareholder would do and how gains/taxable liability would come about if there were any corporate entity earnings involved since inception and vice versa. There are two different sets of rules here that you must know. Other than that, I would also just know what would cause an S Corp to lose their S Corp status and how long it would be before they can reelect. I too had these questions especially when preparing my comparison sheets between the entities.

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Gabe]

Morning NJ, glad you made it home safe yesterday! Any chance you still have those comparison sheets b/w entities?

Side note- I agree with NJ. I think it is easy to get caught up in the why's and why not's. In the end, focus on what you need to know for the exam (as shown in Becker/Wiley/Ninja/etc) and try not to get too overwhelmed with all the details, especially this close to your test date. I think it'll confuse you more than do any good, but that's just my opinion. Sending ya good vibes for your upcoming test @pass

CPA, CFE
CISA- Experience will be completed by August 2016

[NJPRU]

@Gabe – that was probably the most horrible commute of my entire life, and here in Jersey, we usually do well with winter weather – 3 hours of sleet later, and ityll get to you! I sent you the notes btw. Hope they help. 🙂

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Gabe]

Thanks! I grew up in the Midwest so I know winter well 🙂 Moved down South and they just cancelled schools for ~2 inches of snow. It is so odd.

On another note- 6 more days!!!!!!!!!!!!

CPA, CFE
CISA- Experience will be completed by August 2016

[PasstheCPA7]

@ Gabe & NJPRU,

I actually moved my exam back to Saturday! Saw an opening and just couldn't help it, haha. Been a little busy at work, so, it worked out.

Thanks for the S-Corp link Gabe! and @ NJ – thanks for the help on S-Corps. Based on what you said, so, there IS a liquidating and non-liquidating distribution of S-Corps, but, Becker doesn't talk about it (since it's not tested)? Is that what you're saying? In the S-Corp chapter, Becker does talk about distributions though (i.e. distributions coming out of AAA, then Accumulated E & P if any is left). What kind of distributions are these then? Are we just assuming we just have non-liquidating distributions for a S-Corp then?

The reason why I ask this is because I just wanted to compare everything and keep straight in my head. It just helps me keep everything straighten out between C-Corps, S-Corps, and Partnerships.

Finally – @ NJPRU, would love it if you can also send me the comparison sheet or any other helpful notes you might have! Would really appreciate it!

Thanks again guys.

[Gabe]

@pass I would suggest going through the Becker chapters on S corps, C corps and LLCs and creating a spreadsheet to help you with the differences. Good luck on Saturday!

CPA, CFE
CISA- Experience will be completed by August 2016

[Holly]

Can anyone help me to understand why Tim Gearty on the REG videos, page R2-9, says to make the note — Qualified Education Expenses=Through High School? He's talking about Coverdell Education Savings Accounts.

BEC - 79
REG - 85
AUD - 5/27/16

[PasstheCPA7]

Hi guys,

IF we have an Irrevocable Trust – this is NOT considered to be a gift because it is not a present gift. An irrevocable trust is a future gift. Therefore, we know the $14,000 gift tax exclusion does not apply here for a irrevocable trust.

My question is – when are we taxed on the irrevocable trust then? Can anyone explain this?

[Gabe]

@HR I don't jave the book in front of me, but I am assuming he means the beneficiary HAS TO be under 18 or special needs. See: https://www.irs.gov/publications/p970/ch07.html

@Pass a lot of times when I don't understand something in Becker or Wiley or wherever, I google it. A lot of times there is an easier explanation. here are a few links that I think will help…also check out the Becker book, really read through it:

https://www.helsell.com/faq/irrevocable-trusts/

https://www.taxprophet.com/archives/pubs/trust_nl.html

CPA, CFE
CISA- Experience will be completed by August 2016

[Author]

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