***This Course is being evaluated for updates and will be available soon.***

In part 2 of this course, the importance of shareholder basis is emphasized. The annual basis adjustments, and an important election in the ordering of the computation are discussed. The differences between partnerships and S corporations are explored, especially when it comes to utilizing debt to create basis. The next area the course examines is the nature of the retained earnings and various memo accounts that S corporations can have, including such unusual acronyms as Accumulated Adjustments Account (AAA), Profits (E&P), Previously Taxed Income (PTI), and Other Adjustments Account (OAA). The importance of correctly defining Earnings and Profits is emphasized. Finally, the course describes the various entity level taxes that S Corporations may face, including the LIFO tax, the tax on Excess Passive Income, and the built-in-gains ( BIG) tax.