Corporations are subject to an entity-level tax on the net income of the corporation. In addition, the shareholders of the corporation are subject to income tax on the taxable income that they receive from the corporation.

This course focuses primarily on the shareholder-level tax and how it is computed. It describes the tax effects of distributions of money and property by a corporation to its shareholders, including distributions of profits as well as capital assets.

It also describes the tax effects of shareholders when the corporation is liquidated. The course presumes that you are familiar with the basic workings of the corporate income tax as it applies to the formation and day-to-day operations of a corporation.