Topics covered include: Rules regarding pass-through of S corporation items of income and deductions; Additions to S corporation basis, including effects of S corporation liabilities; Characterization of distributions as salary vs. distributions of income; Loans between S corporation and shareholders; Tax distributions. Upon completing this course, you should be able to: Describe transactions and events that increase and decrease a shareholder's basis in S corporation stock; Identify the difference in treatment between distributions of salary, S corporation income, and shareholder loans; Explain how tax distributions work, and how they affect future distributions of cash and property; Identify advantages and disadvantages of forming an S Corporation; Recognize the ordering rules and proper sequence; Differentiate correct statements relating to an S Corporation and shareholder debt on basis and distributions; Describe employment tax issues Identify acceptable reasons for backdating; Recognize how many shareholders are required to form an S Corporation.