This advanced CPE course offers an in-depth exploration of the valuation and succession issues related to S corporation stock, designed specifically for tax professionals with experience in S corporations. Participants will gain a thorough understanding of the latest case law concerning the valuation of S corporation stock, including the nuances of tax affecting and discounts. The course also covers essential basis rules for successor shareholders and addresses the complex basis issues in company-owned life insurance policies. Moreover, it provides a detailed analysis of estates, trusts, QSSTs, and ESBTs as shareholders in S corporations. Participants will learn effective techniques for transferring S corporation ownership through distributions and stock redemptions, equipping them with the skills to advise clients effectively on these critical matters. This CPE class doesn't just inform; it empowers professionals with actionable strategies and insights to navigate the complexities of S corporation stock valuation and succession.
Learning Objectives
Upon completion of this course, participants will be able to:
Be aware of stock basis rules for the successor to a deceased shareholder, including the imputed income in respect of a decedent (IRD) provisions;
Advise clients of the current basis rules for payment of premiums on company-owned life insurance;
Identify the effects of accounting methods and income allocation elections on deceased and successor shareholders;
Understand recent case law concerning the valuation of S corporation stock, and
Be aware of some techniques for using distributions and stock redemptions to transfer ownership of an S corporation.
Major Topics
Estates and Trusts as Eligible Shareholders
Form 1120S, Schedule B-1
Grantor Trusts
Estate and Gift Tax Treatment
GRAT & GRUT
Beneficiary Controlled Trusts
