Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Join expert Greg White, CPA, for this two part webinar series to cover the best strategies for S Corporation taxation.
In part 1, Greg will take a deep dive into the cost of converting a C corporation to an S Corporation. We’ll discuss whether to choose S corp or C corp status.
We’ll cover steps to help you avoid loss of S corporation status. We’ll also cover the special considerations for stock held by estates or trusts of deceased shareholders. Your benefits from taking the course will include a deep understanding of some of the essential elements of tax planning for S corporations.
How do you determine reasonable compensation? We’ll cover every important case and provide practical methods to calculate how much compensation is reasonable. We’ll also cover basis increases that arise from shareholder debt: what works and what doesn’t work. Finally, we’ll cover what happens when an S corporation is inadvertently terminated – how you can get the train back on the track.
Publication Date: November 2022
Designed For
Tax practitioners who want to expand tax planning strategies of S corporations.
Topics Covered
- Converting S corps to C corps — Should you convert?
- Reasonable compensation for shareholder-employees
- Restructuring shareholder loans to increase basis
- Strategies for restoring terminated S corp status (retroactively)
- The types of debt that provide basis to shareholders
- Fixing technical violations of S corporation's eligibility rules
Learning Objectives
- Identify situations where S corporations result in a lower Federal tax burden than C corporations
- Recognize the cost of converting from C corp to S corp status
- Identify some of the traps that can result in the loss of S corporation status
- Identify strategies for restoring S corp status retroactively
- Discover the rules for stock held by estates and trusts, including elections (QSST and ESBT)
- Identify methods to determine reasonable compensation
- Recognize how to restructure loans to provide basis to a shareholder
- Recognize what actions you can take if an S corp has ineligible shareholders or two classes of stock
- Identify the PSC corporate tax rate prior to 2018
- Identify the Accumulated Earnings Tax amount on accumulated taxable income
- Identify the type of organization that would generally qualify as an S Corp
- Identify the number of ways to avoid 2nd class of stock with respect to debt
- Identify the type of trust that is eligible to be a shareholder if the entire trust is treated as owned by an individual who is a U.S. citizen/resident
- Identify the percent of millennials that are concerned they won't collect Social Security according to a Transamerica survey
- Identify the second step in calculating the cost of lost Social Security benefits
- Identify the age you should generally wait until to draw Social Security
- Identify the user fee for correcting late elections
- Identify the case that was virtually identical to Rev. Rul. 75-144 except taxpayers didn't subrogation
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (4 hours)
Program Prerequisites
Basic understanding of preparing S Corporation returns.
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.