Overview

With the increasing complexity and ever-changing nature of tax laws and issues, today’s accountant needs a S corporation course focusing on the hottest tax topics and most frequently encountered issues.  This case driven course will deal with both S corporation and shareholder developments addressing the most common, yet complex Federal S corporation issues and problems. 

Learning Objectives

Once participants have completed this session, they should be able to:

• Form and liquidate an S corporation and determine any tax ramifications to the corporation and shareholders
• Calculate the corporation’s initial inside basis in the assets and shareholder’s stock and debt basis
• Understand how the schedule K items get allocated to the shareholders on their individual Schedule K-1 and the effect on a shareholder’s stock and debt basis
• Prepare a Schedule M-2 and determine how distributions are treated to the shareholders

Course Highlights

This class will review S corporation tax law by looking at case studies addressing issues and problems at both the S corporation and shareholder level.  Each attendee will receive the most comprehensive reference manual with numerous practice aids and real-world examples and case studies. Topics include but are not limited to: 

• Extensive review of the S corporation tax laws with an emphasis on any new legislative changes (e.g., SECURE Act, CARES Act and COVID-related Tax Relief Act of 2020 and Taxpayer Certainty & Disaster Relief Act of 2020) including the 20% qualified business income (QBI) deduction, 3.8% net investment income tax and changes to the interest deduction, fringe benefits and entertainment expenses
• Requirements to make an S election (i.e., types and numbers of shareholders and second class of stock issues)
• Fixing late S corporation elections (i.e. Form 2553)
• S corporation formation (§351) and liquidation issues
• Revocation and termination of S corporations
• Schedule K and K-1 – separately & non-separately stated income and expense items
• Compensation issues including the tax treatment of fringe benefits
• Built in gains tax and other planning opportunities when converting a C to S corporation
• Preparation of the Schedule M-2 and the ordering rules for distributions out of the AAA, PTI, E&P and OAA accounts
• Tax treatment of stock redemptions (sale or distribution?)
• Overview of a shareholder stock and debt basis and deductibility of losses