This course covers tax planning strategies for distributions from a corporation to its shareholders.

Topics covered include:

  • What is a taxable dividend?
    • How is the shareholder’s tax liability computed when receiving a taxable dividend?
  • What is a property dividend?
    • What tax impact do property dividends have on the corporation? The shareholder?
  • What is a “constructive” dividend?
    • What tax impact do constructive dividends have on the corporation?  The shareholder?
  • What Tax Planning opportunities are available when making a corporate distribution?
Learning Objectives
  • Discover what a property dividend is and recognize its effect on the shareholder, the corporation and on Earnings and Profits (E&P)
  • Explore the concept of stock dividends and recognize their effect on the basis of the shareholder’s stock
  • Discover what a Constructive Dividend is and recognize its effect on the corporation and the shareholder.
  • Explore how to minimize the reclassification of salary as a constructive dividend
  • Recognize the importance of planning for corporate distributions.

 

Last updated/reviewed: January 28, 2023
9 Reviews (61 ratings)

Reviews

4
Member's Profile
Concise and instructor explained things well. It surprised me to find out that if FMV of property distributed is less than the mortgage then deemed sale value is equal to mortgage.
5
Anonymous Author
Great summary of all the tax considerations for shareholder distributions. Also, good examples to reinforce understanding of the concepts.
4
Member's Profile
This class had very good examples of real business scenarios regarding this topic.
3
Member's Profile
THe course material could be improved by adding more examples
5
Member's Profile
Very helpful. Great Instructor. Great review test.
5
Member's Profile
really liked the constructive dividend section
4
Member's Profile
comprehensive and good
5
Member's Profile
Excellent course!
4
Member's Profile
Great Course
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 Tax Planning Strategies When Making Shareholder Distributions1:51
  Taxable Dividends4:13
  Computation of Tax on Dividends8:48
  Limitation on the Investment Interest Deduction9:30
  Property Dividends15:49
  Stock Dividends6:44
  Constructive Dividends14:09
  Constructive Dividends Continued11:08
  Tax Planning for Corporate Distributions10:18
CONCLUSION
  Conclusion2:34
CONTINUOUS PLAY
  Tax Planning Strategies When Making Shareholder Distributions1:25:03
SUPPORTING MATERIALS
  Slides: Tax Planning Strategies When Making Shareholder DistributionsPDF
  Tax Planning Strategies When Making Shareholder Distributions Glossary/IndexPDF
REVIEW and TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam