To Access This Course:
This course covers the Why, When, and How of computing Earnings and Profits (E&P).
- Why? Distributions to shareholders are taxable to the extent of corporate E&P.
- When? Ideally, a corporation should compute its E&P annually.
- Presumption that distributions are taxable dividends can only be refuted through a computation of E&P.
- How? There is no set formula for computing E&P.
- Worksheet for computing current E&P included in the instructions to form 5452.
Learning Objectives
- Explore why it is important to compute Earnings and Profits (E&P).
- Discover how distributions from a corporation to its shareholders are taxed.
- Recognize the difference between taxable income and current E&P, and explore a case study that compares taxable income and Book Income with E&P.
- Discover how to compute current E&P
- Recognize the importance of differentiating between Current and Accumulated Earnings and Profits.
Last updated/reviewed: November 12, 2019
2 Reviews (28 ratings)Reviews
Inna Shmukler
(Controller at Fornetix LLC)
Quite informative. Some information is the repeat from the course regarding Taxable Income and Expenses.
Anonymous
(Income Tax Senior)
this was a great course on computing corporate earnings and profit (after 2017).
Prerequisites
Course Complexity: Advanced
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .