Electing S corporations may find it desirable or necessary to terminate this election and convert to a C corporation. Alternatively, qualifying C corporations may determine the S status to be the preferred tax status. Terminating or electing S corporation status can be desirable with important current and future tax considerations. We'll consider situations when such conversions are desirable—identifying and discussing tax planning opportunities and complications at conversion.
Learning Objectives
• Discuss and analyze situations where terminating an S corporation election could be desirable
• Consider common situations where S-election may involuntarily terminate
• Understand the process and tax planning opportunities related to voluntary revocation
• Consider tax result from m making the S corporation election - how and the why
• Discuss b built-in gain tax planning
Major Topics
• Reasons to terminate an S corporation election
• Involuntary terminations
• Voluntary revocations the process and the consequences
• Tax planning opportunities related to the termination of S corporation status
• Complications arising from a mid-year termination
• Limitations on re-electing S corporation status
• Making the S corporation election how and why
• Built-in gain planning
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