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
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.