Calculating corporation's earnings & profits

[ineedtaxhelp2020]

Do capital investments/loans from a corporation's shareholders/investors go into the company's earning & profits calculation?

[Anonymous]

nope.  earnings and profits is exactly as it sounds. earnings and/or profits.  but they can come from investments such as dividends and interest income. Not the investments themselves. 

this can raise some interesting issues for C-Corps but not S-Corps.  the common issues for a C-Corp is personal holding company status (Section 543) or accumulation of excess earnings and profits (Section 531) 

E&P really refers to the ability to pay dividends. E&P is not defined in the code.

you might what to see the first video at this link.

https://video.search.yahoo.com/search/video?fr=mcafee&p=is+there+a+formula+for+determining+reasonabl...