S Corporation Taxation: State of the Art Tax Strategies (Currently Unavailable)
Author: Greg White
CPE Credit: |
8 hours for CPAs 8 hours Federal Tax Related for EAs and OTRPs 8 hours Federal Tax Law for CTEC |
Best Practices and Expert Tips for S Corps after the Tax Cuts and Jobs Act
This must-attend deep-dive program with expert instructor Greg White, CPA, will cover the most important topics to bring to your S corp clients while having some fun in this stressful and hectic year of tax reform. Section 199A has received much attention for owners of passthrough entities such as S corps and LLCs, but tax retorm and other changes make the 2018 returns a new world for tax practitioners.
In this premium course you will learn how courts determine what "reasonable compensation" means in the S corporation area--always a potential area of controversy. Mr. White will also show you how to save taxes when purchasing stock in an S corporation.
Best Practices for 2018 Returns and Beyond
By sheer number, S corps are still the entity of choice for many businesses. Therefore, tax practitioners must be aware of the planning and potential traps associated with S corp taxation. And, in the first year of the Tax Cuts and Jobs Act, now is the time to make sure you're ready to give your S corp clients the best possible advice and tax guidance for 2018 returns and beyond. Mr. White will review real-world strategies that will assist your clients in reducing their tax liabilities, while accomplishing their economic goals, as well as discuss cutting-edge tax strategies.
This course is excluded from the following subscription programs:
Value Pass, Self-Study Package, Webinar Package, Self-Study & Webinar Package, and Firm Package.
Publication Date: November 2018
Designed For
All CPAs, EAs, and other tax professionals as well as tax staff who advice S corps and their owners on tax issues as well as those involved with 1120S preparation.
Topics Covered
- Should You Really Have a C Corp?
- Corporate Tax Rates
- Should You Switch to a C Corp.?
- Accumulated Earnings Tax
- Whose Income Is It?
- Qualification for S Corp Status
- Getting over the Technical Obstacles
- Traps: Second Class of Stock
- Preventing S corp Knuckleheads
- Fixing Late Elections
- Mistakes Were Made
- Patrick Herbert v. Commissioner
- Can You Squeeze Blood out of a Turnip?
- Scott Singer Installations, Inc.
- Blood from a turnip — The Goldsmith Case
- McAlary — RE broker
- Hey, You!!!! Not So Fast!!! What's the Cost in Lost Social Security Benefits?
- Planning for S Corp Compensation
- Election to Claim Deductible Amounts First
- When Do Loans Increase Shareholder Basis?
- You're More Likely to See Pigs Flying...
- Rich S Corp
- Poor S Corp
- Cleaning Up Intercompany Loans
- The Old In”n”Out
- QBID— Overview
- Caps— Limits on the QBID
- Wage/Property Caps— Business”by”business
- Specified Service Trades or Businesses: Guard Rails
- What's Your Occupation?
- Hamburger Strategies
- S Corp or Sole Proprietor?
- Caviar Strategies
- Goldilocks and "Just the Right Amount" of Wages (non”SSTB)
- Non”SSTBs
- Wages
- Tax. Inc. Cap: All Taxpayers
- Admission of New S”H's — Sale v. Contribution
- Sale of Interest to New Owner Simulating a Step”Up on Sale
- S Corp Losses— Fund with Debt or Equity?
- Distributions
- AAA
- Exit Strategy — Liquidations, Sales, Exchanges & Redemptions
- From Bad to Worst
- Using down values
- §1244
- Sale of S Corp Stock
- Moving Income to the Seller
- Redemptions Selling Your Stock Back to the S corp
- Liquidations: Planning Strategies
- Post S”H Death Liquidations
- Post”Death Liquidations Ordinary Income Assets
- Wages as Part of a Stock Sale
- Sales of Shareholder Goodwill
- Whose Goodwill Is It?
- Mr. Cohan, meet Mr. Covenant
- Precise Method to Value Covenants
- Sale of Land to S Corp
- Shareholders Must Follow Form K”1
- Surprise— §179 Taxable Inc. Limit and S”H Comp
- SMLLC or QSub?
- Flashing the "S" Sign
Learning Objectives
- Determine how to apply rules related to acquisitions and liquidations of S corps
- Explain when and how to use trusts as S corp shareholders
- Determine circumstances where S corporations can increase or reduce the 20% QBID ("passthrough deduction")
- Describe the complex rules of basis and distributions
- Identify planning issues related to the use of redemptions in S corps
- Describe the impact of Tax Cuts and Jobs Act of 2017 on 2018 returns
- Identify the C Corporation Tax Rate as a result of the TCJA
- Identify the new corporate tax rate with respect to personal service corporations
- Recognize correct statements with respect to the accumulated earnings tax (AET)
- Differentiate the type of entity is eligible to be treated as an S Corp
- Describe a second class of stock
- Recognize when Revenue Procedure 2013-30 related to fixing late elections is applicable to types of elections
- Describe inadvertent terminations
- Identify the steps in calculating the cost of lost social security benefits
- Recognize the range of average indexed annual earnings results in a 15% annual social security benefit at full retirement age
- Differentiate characteristics of the new QBID (i.e. new §199A) deduction
- Recognize which type of taxpayer is ineligible to take the new §199A deduction
- Identify the full phase in amount related to the new §199A deduction for those individuals filing as single
- Describe correct statements regarding aggregation
- Differentiate correct statements regarding a sale vs. contribution when admitting new shareholders into an S Corp
- Recognize correct statements regarding loans, with respect to funding corporate losses
- Differentiate characteristics or requirements with respect to Section 1244 related to ordinary losses
- Identify characteristics of a sale of S Corp stock from a buyer's position
- Describe default method for moving income to the seller
- Identify characteristics of the current distribution approach
- Recognize correct statements regarding sales of shareholder's goodwill
- Identify the previous corporate tax rate on PSCs
- Identify an advantage to switching to a C Corp
- Recognize who is ineligible to be a shareholder in an S Corp
- Describe shareholder debt structured not considered to be a second class of stock
- Identify the user fee for the correction of late elections
- Calculate the cost of lost social security benefits, after the historical wages are determined identify what you should do next
- Recognize the range of average indexed annual earnings results in a 90% annual social security benefit at full retirement age
- Describe shelf life of how many years the Qualified Business Income Deduction has
- Identify the beginning income phase-out for QBID for certain taxpayers filing married jointly
- Identify the full phase-out for QBID (i.e. no QBID) for certain taxpayers filing married jointly
- Differentiate characteristics attributed to the capital contribution approach, with respect to funding corporate losses
- Identify the most important factor when considering distributions of cash
- Describe the Accumulated Adjustments Account (AAA) reflects accumulated undistributed net income of S-Corp for years after
- Describe which distributions of property scenarios is the gain or loss not recognized
- Differentiate types of transaction seeks to preserve capital character of undeveloped real property
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (8 hours)
Program Prerequisites
Basic understanding of federal income taxation of passthrough entities
Advance Preparation
None