The S corporation form is often misunderstood. With a solid foundation in Scorporation taxation, practitioners can explain to clients how they can use the taxstatus to their advantage. Participants will be prepared to explain the benefits anddrawbacks of electing S corporation status and why business taxpayers may favorpass-through entity treatment over the C corporation. This course provides theknowledge needed to speak effectively to potential business clients and existingshareholders about the S corporation business model that may work for them.
Learning Objectives
Recognize the advantages and disadvantages of S corporation status. Recognize when the S election becomes effective. Identify permitted fiscal years, elections, and user fees. Identify shareholder consent rules and causes of invalid elections. 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 adjustmentsaccounts, other adjustments accounts, and shareholder bases are affected bydistributions. Recall the applicability of various S corporation filing requirements.
Major Topics
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 considerations
