Corporate Tax: Formation and Operation (Currently Unavailable)

Author: Jennifer Kowal

Maximize C Corp Advantages after Tax Reform
After the reduction in the corporate tax rate under the Tax Cuts and Jobs Act of 2017, operating a business in corporate form has become more attractive and many taxpayers may opt to form corporations. But there are many questions to answer when adopting the C corp structure. In this on-demand course, experienced instructor Jennifer Kowal covers the tax consequences of forming a C corporation and operating in corporate form, including contribution of property to a corporation, the effects of the corporation assuming shareholder liabilities on contributed property, contribution of services in exchange for stock, and the tax effect of distributions to shareholders. Ms. Kowal will lead you through how the C corp structure works and the critical decisions and compliance steps necessary to become a C corp. With the new lower tax rates, your clients have questions about how they can take advantage of those rates.

Publication Date: November 2018

Designed For
Tax practitioners at all levels who advise on the taxation of forming and operating corporations.

Topics Covered

• Tax consequences of contributing property to corporation, from shareholder and corporate perspective, including tax basis consequences
• The effect of liabilities on contributed property
• Requirement that shareholders have control immediately after exchange and consequence of contributing services in exchange for stock
• Tax consequences of distributions to shareholders, including difference between dividends and other distributions

Learning Objectives

• Describe the tax consequences of contributing property to corporation, from shareholder and corporate perspective, including tax basis consequences
• Recognize the effect of liabilities on contributed property
• Describe requirement that shareholders have control immediately after exchange and consequence of contributing services in exchange for stock
• Recognize and explain the consequences of distributions to shareholders, including difference between dividends and other distributions
• Identify the rules in which of the following IRC Sections attempt to ensure that the taxpayer's investment is continued in the corporate form
• Recognize which acts makes operating a business in corporate form more attractive under the new lower corporate rates
• Identify the general rule as it relates to corporate formation
• Describe correct statements regarding property
• Identify the new Corporate Tax Rate after passage of the TCJA
• Differentiate IRC Sections and how they apply
• Describe how the new lower corporate rates based on the TCJA make operating a business in corporate form
• Differentiate requirements outlined in IRC Section 351

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None