This two-day course is up to date with all significant legislative, administrative and judicial developments up to the date of presentation. It includes S corporation eligibility and election requirements, basis and other loss limits, taxable and net investment income, distributions compensation, corporate level taxes, terminations and sales of the business.
Identify major changes in the taxation of S corporations due to current developments. Interpret selected COVID-19 relief provisions concerning S corporations, and ambiguous issues thereof. Be aware of the key areas of IRS examinations, especially concerning compensation of shareholders, distributions of cash and property and leveraging shareholder basis. Calculate corporate and shareholder items that affect income, loss and basis. Be aware of some pitfalls in electing S corporation status, especially for limited liability companies and other unincorporated entities. Understand certain tax issues related to financial distress of S corporations and shareholders. Calculate corporate level taxes, including the built-in gains tax, and trace the effects to shareholder’s income and basis. Analyze alternatives for purchasing and selling S corporations. Understand certain estate and succession planning opportunities.
S Corporations: Introduction and IRS Hotspots, Eligibility for S Corporation Status, Income Measurement and Reporting, Distributions from S Corporations to Shareholders, Compensation and Fringe Benefits, Shareholder Stock and Debt Basis, Accounting Methods and Interest Deduction Limits, Business Interest Limitation, Integration of Multiple Loss Limits, Bankruptcy and Financial Distress, Net Investment Income, Built-In Gains Tax, Passive Investment Income, Changes in Tax Status of Business Entity, Purchase and Sale of an S Corporation, Estate and Succession Planning, Qualified Subchapter S Subsidiaries and Other Multiple Entity Relationships.
Tax practitioners with S corporation clientèle, especially those facing transitional problems, including: Estate planning; Changes in shareholders; Planning for sale or purchase of an S corporation; Restructuring a single or multiple entities, PPP loan and forgiveness timing issues, Required accrual method and business interest limitations; Other developing areas of concern.
Familiarity with individual income tax rules and business entities in general.