S Corporations

Course Description:

In this course, the intricacies of setting up and terminating an S corporation are detailed and taxation is discussed. The numerous advantages and disadvantages of this entity are identified to help practitioners determine whether the S corporation is most suitable for their clients. Eligible domestic corporations can avoid double taxation by electing to be treated as an S corporation under the rules of Subchapter S. Subchapter S provides an optional method of corporate taxation and allows small business corporations to elect unusual tax treatment. The S corporation is taxed like a partnership, but in other respects, S corporations are taxed like C corporations.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Recognize a client's potential use of the S Corporation format and its tax advantages and disadvantages by citing the requirements for an S corporation election, identifying eligible S corporation shareholders, specifying the one-class-of-stock-regulations, and determining the ways an S corporation election can be terminated.
• Identify the concepts of S corporation taxation by: Recognizing the application of passive income taxation, accumulated adjustments accounts, built-in gains, net operating losses, tax preference items, and potential capital gains taxes; Determining a shareholder's stock basis from capitalization and loan activity; and Specifying the related party rules including their impact on deductions, available fringe benefits, and tax forms to use when filing as an S corporation.