With the increasing complexity and ever-changing nature of tax laws and issues, today’s accountant needs a S corporation course focusing on the birth, growth, maturity, and death of a closely held S corporation. This case driven course will deal with S corporation income tax laws from formation to liquidation. This class will review S corporation tax law by looking at case studies addressing issues and problems at both the S corporation and shareholder level. Each attendee will receive the most comprehensive reference manual with numerous practice aids and real-world examples and case studies.
Learning Objectives
• Form a S corporation and calculate the entity’s initial inside basis in the assets and shareholder’s stock basis
• Understand the operational issues during the growth and maturity of a S corporation and how the schedule K items get allocated to the shareholders on their individual Schedule K-1 effecting stock and debt basis
• Prepare a Schedule M-2 and determine how distributions are treated to the shareholders
• Comprehend the tax ramifications of liquidating
Major Topics
• Extensive review of the S corporation tax laws with an emphasis on any new legislative changes including any TCJA provisions expiring after 2025
• Requirements to make an S election (i.e., types and numbers of shareholders and second class of stock issues)
• Fixing late S corporation elections (i.e., Form 2553)
• S corporation formation (§351) and liquidation issues
• Revocation and termination of S corporations
• Schedule K and K-1
• separately stated versus non-separately stated income and expense items
• Detailed Schedule K-1 reporting including the 20% qualified business income (QBI) deduction and 3.8% net investment income tax
• Compensation issues including the tax treatment of fringe benefits
• Built in gains tax and other planning opportunities when converting a C to S corporation
• Preparation of the Schedule M-2 and the ordering rules for distributions out of the AAA, PTI, E&P and OAA accounts
• Tax treatment of stock redemptions (sale or distribution”)
