Join experienced tax practitioner and instructor Greg White, CPA, as he presents a broad overview of the reasonable compensation rules, including up-to-the-minute changes. This two-hour CPE webinar will include coverage of how the Tax Cuts and Jobs Act (TCJA) affects decision-making in grey areas, and how to determine the optimum amount of compensation (within a reasonable range) for S corporation shareholder-employees. The new tax law presents opportunities and pitfalls that you clients need to be aware of.
Who Should Attend
CPAs, EAs, and other tax professionals and tax staff who have responsibility for tax planning for S corporations and filing Forms 1120S.
Topics Covered
- Reasonable compensation case law
- When to pay less compensation to increase the 20% passthrough deduction
- When to pay a shareholder employee more compensation to increase the 20% passthrough deduction
- When are S corporations better choices for reducing overall taxes, and when aren't they
- What is the "cost" of paying less in payroll taxes
Learning Objectives
- Recognize how determine "reasonable compensation" for S corporation shareholders
- Identify and apply the reasonable compensation rules in specific settings
- Describe how to maximize S corporation shareholders' 20% passthrough deduction
- Identify and apply a formula to determine the optimum amount of wages to maximize the 20% passthrough deduction
- Recognize how to adjust reasonable compensation (within a reasonable range) to maximize the 20% passthrough deduction
Level
Intermediate
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Participants should have experience in federal income taxation issues including preparation of Forms 1120S.
Advance Preparation
None
Instructor
Greg White
Greg White, CPA, taught for 14 years as an adjunct professor for Golden Gate University. He’s admitted to practice before the United States Tax Court. He is a founder and shareholder, in WGN PS in Seattle, WA. He has been named a Top 50 IRS Representation Practitioner in the U.S. by CPA Magazine and has taught for a number of professional organizations. Greg enjoys the technical side of tax, but also likes to have fun in class.