New or existing clients and business need assistance with the most misunderstood areas of S Corporations taxation and how they can use them to their advantage. Be prepared to explain the benefits and drawbacks of electing S Corporation status and why more business taxpayers favor the pass-through entity over the C Corporation. This course will give you the knowledge you need to speak effectively to potential business clients and existing shareholders about how you can make the S Corporation business model work for them.
Staff and senior associates in public accounting who assist clients with tax compliance for closely held S Corporations
Identify the advantages and potential disadvantages of operating as an S corporation.
-Recognize individuals and entities that are eligible to own S corporation stock.
-Determine how to make a proper S corporation election.
-Identify causes of voluntary and involuntary termination.
-Recall methods of allocating income for the short years caused by a termination.
-Calculate the tax on built-in gains.
-Identify the items of income, gain, loss, and deduction that adjust basis of shares and indebtedness and the order of application of the items.
-Determine how accumulated earnings and profits, accumulated adjustments account, other adjustments account, and the shareholder’s basis are affected by distributions.
-Recognize when a Section 444 election and resulting required payments should be made.
-Determine whether and to what extent passive losses can be deducted against other income.
-Identify which fringe benefits are deductible by the shareholders.
Advantages vs. disadvantages of S Corporations
-S Corporation Qualifications
-Electing S Corporation status
- Termination of S Corporation Status
-S Corporation Tax on Built-in Gains
-S Corporation Pass-Through to Shareholders, Basis and Losses
-S Corporation Distributions
-Taxable Year of S Corporations
-S Corporation Passive Activity Rules, Fringe Benefits, and Other Considerations