S Corporation Taxation Strategies
Author: Greg White
| CPE Credit: |
5 hours for CPAs
5 hours Federal Tax Related for EAs and OTRPs
5 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 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
Cover the most important topics while having fun. Learn how courts determine what "reasonable compensation" means in the S corporation area. Also, learn how to save taxes when purchasing stock in an S corporation. By sheer number, S corps are still the entity of choice for many businesses. Therefore, tax practitioners need to be aware of the planning and potential traps associated with S corp taxation. Review real-world strategies that will assist your clients in reducing their tax liabilities, while accomplishing their economic goals, as well as discuss cutting-edge tax strategies.
Publication Date: October 2024
Topics Covered
- Treating unwritten advances as loans to shareholder
- Inadvertent S Corp terminations
- "Synthetic step-up" for new S Corp shareholders
- Deducting part of cost of stock redemption or stock sale
- Basis in S Corp stock
- Home office of shareholder/employee
- Unreimbursed shareholder expenses
- "Solo Ks"
- Trusts and estates as shareholders
- Be sure S Corp (not shareholder) reports income
- Maximizing sec. 199A (20% QBID)
- Reasonable compensation
- Subsidiaries - QSUB or SMLLC?
- Redemptions and stock sales
- Consequences of property distributions
- Post-death liquidations
- Reorganizations
Learning Objectives
- Recognize how to apply rules related to acquisitions and liquidations of S corps
- Describe when and how to use trusts as S corp shareholders
- Identify circumstances where S corporations can increase or reduce the 20% QBID ("passthrough deduction")
- Identify the complex rules of basis and distributions
- Identify planning issues related to the use of redemptions in S corps
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (5 hours)
Program Prerequisites
None
Advance Preparation
None
