STRAYER ACC565 Week 7 DISCUSSIONS

WEEK 7″S Corporation” Please respond to the following:
Per the text and IRC, losses and deductions of an S corporation pass
through to the shareholders of the corporation and are limited to the
shareholders’ basis in the S corporation. Suggest a plan for a client to
increase the deductible pass through loss and deductions over the
initial investment from a new wholly owned S corporation.From the e-Activity, differentiate between the treatment of S
corporation distributions from corporations having no earnings and
profits, and corporations having accumulated earnings and profits.
Suggest the most significant reason for the difference in the treatment
of distributions. Justify your response.