S Corporation Taxation: State of the Art Tax Strategies: Part 2
Author: Greg White
| CPE Credit: |
4 hours for CPAs
4 hours Federal Tax Related for EAs and OTRPs
4 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 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
We’ll take a deep dive into a broad array of tax strategies covering a broad range of strategies including reasonable compensation, cost of converting a C corporation to an S corporation, how to fix inadvertent S corporation terminations, creating shareholder basis through loans, exit strategies for owners, maximizing the section 199A deduction, and important considerations for preserving S corp status when a shareholder dies.
Publication Date: October 2025
Designed For
Tax professionals seeking practical strategies in S corporation planning.
Topics Covered
- Types of debt that provide basis to shareholders
- Tax consequences of property distributions from an S corp (including circumstances where ordinary income is triggered)
- Whether shareholders should provide funds through loans or contributions
- Exit strategies for S corporation owners
- The downside of contributing appreciated property to an S corporation
Learning Objectives
- Explain to how to restructure loans to provide basis to a shareholder
- Identify methods to provide a “step-up” to new shareholders – like the step-up that partnerships provide under §743
- Identify strategies to restructure intercompany debt to provide basis to shareholders
- Identify a wide variety of exit strategies for S corporation shareholders
- Identify the court case that upheld the “incorporated pocketbook” method in structuring intercompany loans
- Identify the form a shareholder can file if their S corporation’s K-1 is inconsistent with their tax return
- Identify the rule that rule allows a taxpayer to deduct expenses paid with borrowed money from a third party
- Identify the default percentage step-up recognized in a sale of S corporation stock
- Identify the maximum ownership percentage an S corporation can hold in an LLC
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (4 hours)
Program Prerequisites
Some experience with S corporations and Form 1120-S.
Advance Preparation
None
