S Corporations: Qualification Requirements 2024

Overview

The use of an S corporation election can dramatically affect the tax consequences of owning a corporate business. This course focuses on the requirements that must be satisfied to make and retain this tax election.

Highlights

• Qualified shareholder requirement
• Trusts as shareholders
• Estates as shareholders
• Qualified tax exempt shareholders
• Tax planning ideas to accommodate economic investments by disqualified investors
• Special rules for counting the number of shareholders
• One class of stock requirement
• Indirect preferences creating risk of failing one class of stock requirement
• Disqualified corporations
• Making an effective S corporation election
• Relief for late or defective elections
• Inadvertent termination relief for involuntary terminations

Prerequisites

None

Designed For

CPAs

Objectives

• Identify and discuss the requirements that must be satisfied to make the S corporation election
• Recognize complications related to having trusts, estates, tax-exempt and ESOP shareholders
• Review and application of the one class of stock requirement to accomplish continued qualification
• Determine tax planning ideas to accommodate economic participation by disqualified investors

Preparation

None

Notice

This course is offered by a 3rd party vendor. Login instructions will not be accessible in the My CPE Tracker section of the ISCPA website. Login instructions will be emailed directly to you by California Education Foundation (CalCPA).