S Corporations 2022

Overview

The intricacies of setting up and terminating an S corporation in this course are detailed and taxation is discussed. This entity’s numerous advantages and disadvantages 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.

Highlights

• Advantages & disadvantages
• S corporation status
• Termination
• Income and expense
• Built-in gain
• Passive income
• Basis of stocks and debts
• Distributions
• Form 1120S
• Fringe benefits

Objectives

• 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,
• -Specifying the related party rules including their impact on deductions, available fringe benefits, and tax forms to use when filing as an S corporation.

Notice

This is a self-study/on demand course offered by a 3rd party vendor and will NOT be accessible in the My Upcoming CPE section of the ISCPA website. Course access information will be emailed directly to you by CalCPA. The course expires one year from the purchase date. Format = Downloadable PDF.