C Corp or Passthrough: Choice of Entity Turned On Its Ear or Not? (Currently Unavailable)

Author: Bradley Burnett

C corp? S corp? Which does the Tax Cuts and Jobs Act really favor
The new legislation (TCJA) seems to turn the choice of business entity analysis on its ear. Or does it? And, if it does, which ear? Is racing out to become a C Corp all it’s cracked up to be? The lower corporate tax rate has made interest in C corp structure higher but how does the TCJA and the provisions for passthroughs like S corps provide tax savings opportunities to match or even beat the ones provided for C corps? This on-demand course with experienced practitioner and instructor Bradley. J. Burnett, J.D., LL.M., cracks the egg, makes it understandable and instructs how to plan for best results.

Publication Date: January 2019

Designed For
Any person who desires to understand the new playing field for pass-through entities and C Corps after recent tax legislation, how to save money in taxes and optimally structure small business entities.

Topics Covered

• How Does Client Choose Entity?
• Harry Truman Decision Model
• Consequences of new Corp rate cuts — Are C Corps still like lobster traps?
• Tax Cuts and Jobs Act
• What Does §199 Have To Do With Cheesecake?
• Should You Switch to a C Corp?
• C Corps are Like Lobster Traps
• C Corporations — Other Treacheries
• Should You Switch from C to S Corp?
• S Corps — Treacheries and Opportunities
• §1375 Sting Tax — Prevention
• TCJA ” §163(j) Business Interest Expense Limit
• How Does §163(j) Vary with Entity Type?
• Compensation Issues
• Tax Cuts and Jobs Act Passthrough Deduction
• How passthroughs still shine quite a bit, particularly if you qualify for the §199A deduction

Learning Objectives

• Recognize how to explore and remove the mystery from the pros and cons of various entity choices under TCJA
• Identify the minimum late filing penalty applicable to Forms 1120 that are filed more than 60 days late
• Recognize the corporate income tax rate as a result of the Tax Cuts and Jobs Act
• Differentiate court cases and how they apply to your clients
• Describe which sections of the Internal Revenue Code the "sting tax" can be found
• Identify the Tentative Qualified Business Income Deduction
• Describe the decision model that can be applied to a choice of entity analysis
• Recognize the underpayment rate applicable to large corporations under Code section 6621(c)(1)
• Recognize which organizations are most frequently audited by the IRS, according to the the 2017 Data Book
• Identify the minimum tax credit for a C corporation that switched to S corporations and that had an AMT carryover for tax year 2020
• Describe correct statements regarding passthrough entities
• Recognize entities ineligible for the QBI deduction
• Identify the deduction limit for business interest expenses which cannot exceed what sum, under Code section 163(j), for tax years 2018 through 2021
• Recognize which document the Business Interest Expense Limit (under Code section 163(j)) calculated on
• Recognize which tax years Qualified Business Income Deductions may be taken

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None