Tax planning strategies for new businesses considering electing S corporation status, and the pros and cons of switching from a C corporation to an S corporation.
DESIGNED FOR
- Public accounting firm staff and senior associates
- CPAs
- S corporation tax filers
BENEFITS
- Recognize the advantages and disadvantages of S corporation status.
- Recognize when the S election becomes effective.
- Identify shareholder consent rules and causes of invalid elections.
- Identify permitted fiscal years, elections, and user fees.
- Recognize events causing involuntary termination.
- Recognize when an S corporation is subject to tax at the entity level.
- Recognize how accumulated earnings and profits, accumulated adjustments accounts, other adjustments accounts, and shareholder bases are affected by distributions.
- Recall the applicability of various S corporation filing requirements.
HIGHLIGHTS
Advantages and disadvantages of S corporations
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 considerationsPREREQUISITES
None