Description

This course goes beyond the basics and addresses important practical issues that an experienced practitioner must know. Even if you have attended other S corporation courses, you will learn something new in this course.

Instructor: Sue Smith, CPA

Target Audience

All practitioners and controllers who have attended a basic S corporation course and want to understand more complex issues and their practical implications

Course Objectives

Understand how stock basis, AAA, and other limitations are determined

Appreciate how corporation planning can be used in an S corporation to change the effects of the one-class-of-stock rule

Understand what S corporation issues are being debated with the Service, settled in courts, and guided by administrative decisions

Subjects

Inclusion of OBBBA (One Big Beautiful Bill Act) provisions that are germane to this course

Final regulations on “eligible terminated S corporations” (ETSCs)

Cases, rulings, and tax law changes affecting S corporations

Compensation planning in S corporations, including limitations in a family-controlled business; self-employment tax issues, including IRS efforts to address underreporing of S corporation officer compensation

Use of redemptions: still some advantages

Planning for the liquidation of an S corporation

Tax issues for family ownership of S corporation stock

Impact of the tax on net investment income on sales of S corporation stock

Stock basis: Loss limitations, AAA, and distribution issues in depth

Debt basis: what the regulations on back-to-back loans mean to investors

Estate planning for S corporation shareholders, including buy-sell agreements, QSubs, ESBTs, and uses of life insurance

Built-in gains: the 5-year recognition period

S corporation structuring: one class of stock

Methods of accounting

Legislation on mortgage interest reporting, basis, statute of limitations, and tax return due dates

New cases on revocation of S election in bankruptcy court and documentation of open account indebtedness and Chief Counsel Advice on carryover of losses for ESBTs

Prerequisites

A basic course in S corporations; some experience in advising S corporations and their shareholders