This course addresses the S corporation rules that every CPA needs to know—from basics such as qualification of an entity as an S corporation and basis rules including developments in the tax law over the past year affecting S corporations and their shareholders. The course will cover safe harbors for redemption agreements, warrants, employment agreements and more. It also covers more advanced topics such as the pitfalls in having trusts own S corporation stock and tax planning for S corporation acquisitions using disregarded entities and partnerships to achieve results not possible with a single entity type. Don’t miss the discussion; don’t miss the ideas.
DESIGNED FOR
Public Practictioners
BENEFITS
- Understand how to avoid inadvertent terminations
- Understand and review basic rules
- Learn planning techniques
HIGHLIGHTS
- Proposed tax changes affecting S corporation shareholders
- Qualification as a Subchapter S corporation including restrictions on shareholders and the one class of stock rule and special rules for buy-sell agreements, redemption agreements, warrants and options
- Reasonable compensation for S corporation owners and the use of blocker entities
- The difference between a redemption under Section 302 versus a redemption under 301 in the S corporation context
- Special issues for trusts owning S corporation stock including available elections
- Inadvertent terminations
- S corporation operations including the per share per day rule, basis rules, distribution rules and dealing with third party debt for basis purposes
- Built in gains planning
- Planning for cancellation of debt with S corporations
- Tiered entity structures involving S corporations including using partnership entities including LLCs in conjunction with S corporation acquisitions
- S corporation ESOPs as an exit vehicle—creating your own buyer
COURSE LEVEL
Update
PREREQUISITES
None
ADVANCE PREPARATION
None
ADDITIONAL NOTES
IRS Program Number: 90EKV-T-00277-20-O **Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to leighanne.conroy@acpen.com.