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

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