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This course covers the Why, When, and How of computing Earnings & Profits (E&P) for Tax Purposes.

  1. Why?  Distributions to shareholders are taxable to the extent of corporate E&P.
  2. When?  Ideally, a corporation should compute its E&P annually.
    1. Presumption that distributions are taxable dividends can only be refuted through a computation of E&P.
  3. How?  There is no set formula for computing E&P, thus this course provides much needed insight into that process.
    1. Worksheet for computing current E&P is included in the instructions to form 5452. 

Learning Objectives

  • Recognize why it is important to compute Earnings & Profits (E&P).
  • Explore how distributions from a corporation to its shareholders are taxed.
  • Identify the difference between taxable income and current E&P.
  • Explore how to compute current E&P.
  • Recopgnize the importance of differentiating between Current and Accumulated E&P.
Last updated/reviewed: May 14, 2018

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 .
Course Syllabus
INTRODUCTION and OVERVIEW
  2:00Introduction to Computing Corporate Earnings & Profits
  8:34Importance of Computing Earnings & Profits
  6:41Corporate Distributions
Computing and Reporting Earnings & Profits
  10:12Computing Earnings & Profits
  10:44Computing Earnings & Profits (Continued)
  8:19Computing Earnings & Profits Example
  5:56Reporting Requirements
  12:33Case Study
CONCLUSION
  6:44Case Study Continued and Course Conclusion
Continuous Play
  1:11:45Computing Corporate Earnings & Profits
SUPPORTING MATERIALS
  PDFSlides: Computing Corporate Earnings & Profits
  PDFComputing Corporate Earnings & Profits Glossary/Index
REVIEW and TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM