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.