Video: Corporations: Entity/Owner Transactions, Including Contributions, Loans and Distributions Overview

In this lesson, get ready to unpack the intricate dealings between corporations and their shareholders, with Nick Palazzolo, CPA, leading the charge. He covers the essentials of entity/owner transactions including contributions, loans, and various kinds of distributions. Nick breaks down complex tax implications for different types of contributions – think land versus services versus cash – and he doesn't shy away from the challenging but crucial task of calculating an owner's basis in the corporation for tax purposes. Jargon like realized and recognized gains or losses becomes clear as he dissects these concepts for both shareholders and corporations, laying out scenarios you might encounter on exam day. The discussion further delves into the nuances of non-liquidating distributions and how these impact shareholder taxation, with a special focus on reconciling an owner's beginning and ending basis in a corporation. Dive in to demystify these transactions and gain a solid understanding of their significance.