What nonliquidating distributions made by an S corporation are taxable to its shareholders? Tax-free to its shareholders? What nonliquidating distributions made by an S corporation are taxable to its shareholders? Nonliquidating distributions paid by an S corporation that has no accumulated E&P are treated as distributions paid to the shareholder up to the amount of his or her stock basis are All Distributions exceeding the shareholder's stock basis are What nonliquidating distributions made by an S corporation are tax-free to its shareholders? Different rules apply to S corporations that have accumulated E&P. Distributions out of the accumulated adjustments account (AAA) are the shareholder's stock basis. Distributions out of the S corporation's accumulated E&P are Distributions exceeding the S corporation's accumulated E&P are the shareholder's stock basis. Distributions exceeding the shareholder's stock basis are