S Corporation Taxation: Advanced Issues

Overview

This course goes beyond the basics and addresses important practical issues that an experienced practitioner must know about S corporations.

Highlights

• Detailed rules governing basis in the shareholder’s debt and stock
• AAA
• Built-in gains incurred from the sale of assets
• Redemptions and liquidations
• Compensation planning for shareholders, including planning strategies under the SECURE Act
• Tax Cuts and Jobs Act of 2017 and the various stimulus acts, as applicable

Prerequisites

Experience in S corporation tax return preparation

Designed For

Accounting and Financial Professionals whose practices include S corporations and their shareholders

Objectives

• Examine operational issues, keeping track of AAA, and how to calculate basis, apply distribution rules, and avoid loss limitations
• Describe corporate level taxes
• Describe the rules governing the redemption and liquidation of an S corporation
• Examine the issues in compensation planning in S corporations, including limitations in a family-controlled business, in particular after criticism of the Treasury Inspector General for Tax Administration of the IRS efforts to address underreporting of S corporation officer compensation
• Be familiar with the results of the case studies that reinforce key learning points