Learn S corporation core fundamentals and strategies
Learn how to assist your clients with the most misunderstood areas of S corporation taxation and how they can use them to their advantage.
Understand the benefits and drawbacks of electing S corporation status, and uncover the tax planning strategies for new businesses considering the S corporation form of entity.
This webcast has been updated for legislation that affects S corporations, including the new Schedule K-2 and K-3 requirements.
Make the model work
Learn to speak effectively to potential business clients and existing shareholders about how the S corporation business model might work for them.
Learning Objectives
· Identify the advantages and potential disadvantages of operating as an S corporation.
· Recognize individuals and entities that are eligible to own S corporation stock.
· Determine how to make a proper S corporation election.
· Identify causes of voluntary and involuntary termination.
· Recall methods of allocating income for the short years caused by a termination.
· Calculate the tax on built-in gains.
· Identify the items of income, gain, loss, and deduction that adjust basis of shares and indebtedness and the order of application of the items.
· Determine how accumulated earnings and profits, accumulated adjustments account, other adjustments account, and the shareholder's basis are affected by distributions.
· Recognize when a Section 444 election and resulting required payments should be made.
· Determine whether and to what extent passive losses can be deducted against other income.
· Identify which fringe benefits are deductible by the shareholders.
Major Topics
· Advantages versus disadvantages of S corporations
· S corporation qualifications
· Electing S corporation status
· Termination of S corporation status
· S corporation tax on built-in gains
· S corporation pass-through to shareholders, basis, and losses
· S corporation distributions
· Taxable year of S corporations
· S corporation passive activity rules, fringe benefits, and other considerations
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