Finance Exam Prep
Ran Chen, EA, CFP®
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Enrolled Agent Exam [Part 1] 81, S Corporation Distributions and Basis
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to determine if an S corporation distribution is a tax-free return of capital or a taxable capital gain. • The critical difference between stock basis and debt basis, and why only stock basis absorbs distributions tax-free. • The specific year-end basis ordering rule: Income first, then Distributions, then Losses. • How to apply the four-tier distribution system for S corps with prior C corporation Earnings and Profits (E&P). • Why shareholder basis is the ultimate limit for deducting S corporation losses passed through on Schedule K-1. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep
![Enrolled Agent Exam [Part 2] 30, S Corp Reasonable Compensation Requirement](https://is1-ssl.mzstatic.com/image/thumb/Podcasts211/v4/61/8c/65/618c6502-3a7a-880a-56d8-b1e0e4f0c342/mza_18293400859732431322.png/160x160bb.jpg)
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