Non-iquidating Distributions (2 of 2) Earnings and profits(E&P) E&P not defined in the code E&P consists of current accumulated Distributions are based upon current E&P first accumulated e&P second Distributions in excess of e&P are considered a return of capital5 Non-liquidating Distributions (2 of 2) Earnings and profits (E&P) –E&P not defined in the Code. –E&P consists of current & accumulated –Distributions are based upon current E&P first & accumulated E&P second –Distributions in excess of E&P are considered a return of capital