S Corporations-Advanced Issues

Description

Though a popular entity form, S corporations present many unique traps that advisers must be aware of. From advising the client as to the appropriateness of an S election, to proper preparation of the Form 1120S and Schedule K-1, to liquidation of the S corporation, this program provides thorough coverage of Subchapter S. Related knowledge needed to serve the S corporation client and its owners, including comprehensive coverage of any tax law changes and their planning implications.

Highlights

• S Corp versus partnership or LLC-how many differences remain?
• Impact of the qualified business income deduction added by the Tax Cuts and Jobs Act on the decision whether or not an entity should be an S corporation
• Making the election
• Determination of reasonable compensation
• Built-in gain, excess net passive investment income, and LIFO recapture
• Shareholder basis, AAA, OA, and retained earnings
• Coordination with Subchapter C,
• Redemptions of stock
• Short tax periods
• S shareholding trusts
• Application of the net investment income tax to S Corporations
• Current S Corporation cases and rulings

Objectives

Participants will be able to:

• Recognize when an S election is the best tax plan taking into account the 21% C corporation rates
• Use trusts, non-voting shares, and other planning tools to reduce taxes
• Establish and defend reasonable compensation for S corporation shareholder/employees,
• Minimize income subject to the 3.8% Medicare Tax
• Account for S corporation revocations and terminations
• Reconcile AAA and shareholder basis
• Coordinate tax planning for the S corporation and owners
• Apply qualified business income deduction rules to S corporations

Designed For

Accounting and financial professionals with supervisory and tax planning responsibility who work with S corporations. May also be suitable for public practice.