Corporate taxation can be complex but understanding it is essential for practitioners who advise business clients. This course provides a focused, practical review of three key areas that frequently arise in corporate tax planning and compliance: corporate tax credits, stock redemptions and dispositions, and the corporate alternative minimum tax (CAMT). In this course, we will examine the major corporate tax credits available under current law — including the general business credit and its components, the Work Opportunity Tax Credit, the small employer health insurance credit, and credits related to green energy and clean vehicles. We will also walk through the rules governing stock redemptions under IRC Section 302, including the requirements for substantially disproportionate redemptions, the treatment of redemptions as dividends versus capital transactions, and the federal excise tax on corporate stock buybacks under Section 4501. Finally, we will address the corporate alternative minimum tax and practical planning considerations. Through discussion and easy-to-follow examples, you will leave better equipped to advise corporate clients on these important areas of the tax law.
Learning Objectives
- Recognize tax credits applicable to corporations under current law, including components of the general business credit
- State the requirements for a substantially disproportionate redemption under IRC Section 302(b)
- Identify the tax implications and reporting requirements of corporate stock acquisitions and redemptions
- State when the corporate alternative minimum tax applies to corporations and how adjusted financial statement income is determined
Major Topics
- Redemptions vs. dividends
- Corporate acquisition issues
- Foreign tax credit (Form 1118)
- General business credit
- Alternative minimum tax
