Review a variety of tax subjects to effectively use a corporation to conduct a business.
Cover information with regard to deciding to make or not make an S corp election. Determining how to minimize double taxation while benefitting from lower corporate tax rates. Review topics such as the sale of the corporate business, stock redemptions, transfers of assets for stock, the risk of imposition of the personal holding company tax, and the accumulated earnings tax.
Identify the potential double tax system applicable to corporations and shareholders.
Determine the differences between the corporate and the individual tax rate structures.
Recall the tax law applicable to non-liquidating distributions, redemptions and liquidations.
Determine how to use tax deductible payments to shareholders to avoid double taxation, including the risk of constructive dividends.
Recall special rules related to stock losses.
Taxation of corporations and shareholders: potential double tax.
Tax deductible payments to avoid double tax.
Non-liquidating distributions, including constructive dividends.
Corporation and shareholder partnerships: lessening double tax.
Sales of corporate businesses.
Making or terminating the S corp election.
Stock sales using Section 1045, 1042 or 1202.
Losses on stock dispositions.
Tax planning using redemptions.
Risk of personal holding company or accumulated earnings tax.
Transfers of property for stock: Section 351
CPAs, attorneys and tax practitioners.
An understanding of the taxation of individuals, corporations, S corps and partnerships.