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: August 12, 2023
4 Reviews (46 ratings)

Reviews

2
Member's Profile
The title of the course was related E&P after 2017. However, the materials were just based on the old E&P way of calculations. it was very elementary. I was definitely expecting a higher level of details discussing 163j, GILITI and other changes made byTCJA
5
Member's Profile
Great subject; well discussed. Would have liked to see more time devoted to the more challenging strategies.
5
Member's Profile
Quite informative. Some information is the repeat from the course regarding Taxable Income and Expenses.
5
Anonymous Author
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 .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION and OVERVIEW
  Introduction to Computing Corporate Earnings and Profits After 20173:34
  Importance of Computing E&P5:06
  Corporate Distrubutions5:02
  Computing E&P17:00
  Depreciation Example10:19
  Reporting Requirements5:08
  Case Study6:37
  Taxation of Distributions to Shareholders13:00
  What is the Taxable Dividend?7:45
CONCLUSION
  Conclusion2:50
Continuous Play
  Computing Corporate Earnings and Profits After 2017 Full Video1:16:20
SUPPORTING MATERIALS
  Slides: Computing Corporate Earnings and Profits After 2017PDF
  Computing Corporate Earnings and Profits After 2017 Glossary/IndexPDF
REVIEW and TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam