EA Exam Prep Part 2: S Corporations (Currently Unavailable)

Author: Eva Rosenberg

This is the fifteenth class of the EA Exam Prep Part 2 series. What’s so special about S Corporations? TaxMama® knows, and she shares it with you in this information packed course. Learn the unique characteristics of the S Corporation. Find out the pros and cons of making the S Corporation election and the requirements to keep it. Review deductions, including special rules for fringe benefits for shareholders. Learn about separately, and non-separately stated, items. Discover the four times a S Corporation is subject to income taxes, and more. TaxMama® also tells you one very big plus to electing S Corporations over C Corporations.

Publication Date: August 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about income tax preparation and more. Excellent training for staff working in tax offices, accounting practices, and corporate settings, as well as independent bookkeepers. This course provides an in-depth look at S Corporations. It is especially helpful to those with no hands-on experience preparing tax returns – and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• What is an S Corporation?
• Internal Revenue Service pages about S Corporations
• Fundamentals of S Corporations
• Pros and cons of S Corporation election
• S Corporation election
• S Corporation eligibility requirements
• Form 2553
• Late elections
• Relief for late S Corporation elections
• Separately stated items
• Nonseparately stated items
• Shareholder's use of their home
• Reasonable compensation
• Fringe benefits and the 2% shareholder rule
• C Corporation to S Corporation conversions (and vice versa)
• Built-in gains (BIG) tax
• Passive Investment Income tax
• LIFO recapture
• General business credit recapture
• Distributions
• Distributions from an S Corporation that was a former C Corporation
• Accumulated adjustments account (AAA)
• Accumulated earnings and profits (accumulated E&P)
• Other adjustments account (OAA)
• Previously taxed income (PTI)
• Distribution ordering rules
• Stock basis
• Loans to and from shareholders
• Shareholder's basis
• Suspended losses
• At-risk and passive activity loss (PAL) limits
• S Corporation termination
• Discharge of debt
• Filing requirements and due dates
• Late penalties

Learning Objectives

• Recognize the pros and cons of the S Corporation
• Identify requirements to elect and retain S Corporation status
• Recognize how to remedy a late S Corporation election
• Identify separately and nonseparately stated items
• Identify how to treat fringe benefits for more than 2% shareholders
• Identify special taxes that apply to S Corporations
• Recognize how to determine reasonable compensation of an officer
• Identify how to allocate distributions according to the ordering rules
• Calculate shareholder basis
• Recognize how to compute the basis of loans to and from shareholders
• Identify filing requirements and late penalties
• Recognize S Corporation terminations

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None