Develop skills in S corporation taxation

Establish a strong set of core skills necessary for all areas of S corporation client services. Learn basic and advanced S corporation concepts to work through how to use those concepts during tax planning to reduce taxes for small business clients.

Determine when S corporation status may be advantageous for a business and what requirements must be met, then focus on the areas of income, deductions, distributions, basis, and other issues such as passive losses, involuntary terminations, and fringe benefits.

Courses Included:

• S Corporation Fundamentals
• Advanced Tax Planning S Corporations
• Tax Planning for Small Businesses

Tax Staff Essentials is a comprehensive, integrated curriculum that provides tax training for four different experience levels and is available in four different formats: Online, On-site, Tax Schools, and Webcasts.

Who Will Benefit

• Tax professionals seeking in-depth training on S corporation income taxes

Key Topics

• Why elect Subchapter S
• S corporation qualifications
• S corporation election
• Termination of S corporation status
• Tax on S corporation built-in gains
• S corporation pass-through activity to shareholders
• Shareholder basis and losses
• Distributions
• S corporation passive activity rules, fringe benefits, and other considerations
• Basis in S corporation stock
• Compensation planning
• Qualified subchapter S subsidiaries
• Liquidations, reorganizations, and redemptions
• Estate planning and the use of trusts

Learning Outcomes

• Determine when an S corporation may be advantageous for a business.
• Identify the potential disadvantages to operating as an S corporation.
• Identify the requirements that must be met to qualify as an S corporation.
• Recognize individuals and entities that are eligible to own S corporation stock.
• Determine how to make a proper S corporation election and when it becomes effective.
• Identify who must consent to the election.
• Identify causes of voluntary and involuntary termination.
• Identify revocation of the election.
• Recall methods of allocating income for the short years caused by a termination.
• Determine whether an S corporation is subject to tax.
• Recognize how to calculate the tax on built-in gains.
• Determine income or loss that passes through to the shareholder.
• Identify the items of income, gain, loss, and deduction that adjust basis of shares and indebtedness and the order of application of the items.
• Determine how losses can be offset by debt basis after stock basis has been reduced to zero.
• Identify the concept of distributions.
• Determine how accumulated earnings and profits (AE&P), an accumulated adjustments account (AAA), another adjustments account (OAA), and the shareholder’s basis are affected by distributions.
• Determine permitted fiscal years, elections, and user fees.
• Identify situations in which a fiscal year is allowable.
• Recognize when a Section 444 election and resulting required payments should be made.
• Recognize active and passive income and determine material participation.
• Determine whether and to what extent passive losses can be deducted against other income.
• Identify which fringe benefits are deductible by the shareholders.