With the increasing complexity and ever-changing nature of tax laws and issues, today?s accountant needs a S corporation course focusing on the birth, growth, maturity, and death of a closely held S corporation. This case driven course will deal with S corporation income tax laws from formation to liquidation. This class will review S corporation tax law by looking at case studies addressing issues and problems at both the S corporation and shareholder level. Each attendee will receive the most comprehensive reference manual with numerous practice aids and real-world examples and case studies.
Target Audience
Tax professionals (in public or private industry) seeking a case driven income tax return course addressing many common, yet complex Federal S corporation issues and problems.
Course Objectives
Form a S corporation and calculate the entity• s initial inside basis in the assets and shareholder• s stock basis • Understand the operational issues during the growth and maturity of a S corporation and how the schedule K items get allocated to the shareholders on their individual Schedule K-1 effecting stock and debt basis • Prepare a Schedule M-2 and determine how distributions are treated to the shareholders • Comprehend the tax ramifications of liquidating
Subjects
Extensive review of the S corporation tax laws with an emphasis on any new legislative changes including any TCJA provisions expiring after 2025 • Requirements to make an S election (i.e., types and numbers of shareholders and second class of stock issues) • Fixing late S corporation elections (i.e., Form 2553) • S corporation formation (§351) and liquidation issues • Revocation and termination of S corporations • Schedule K and K-1 • separately stated versus non-separately stated income and expense items • Detailed Schedule K-1 reporting including the 20% qualified business income (QBI) deduction and 3.8% net investment income tax • Compensation issues including the tax treatment of fringe benefits • Built in gains tax and other planning opportunities when converting a C to S corporation • Preparation of the Schedule M-2 and the ordering rules for distributions out of the AAA, PTI, E&P and OAA accounts • Tax treatment of stock redemptions (sale or distribution• )
Advanced Preparation
Background in S corporation and individual income tax law.
