||Field Of Study
|Interactive Self Study
||General Understanding of Federal Income Taxation
|Basic to Intermediate
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.
Who Should Attend: CPAs, Enrolled Agents, Registered Tax Preparer, and all other Tax Professionals
- Advantages & disadvantages
- S corporation status
- Income & expense
- Built-in gain
- Passive income
- Basis of stocks & debts
- Form 1120S
- Fringe benefits
1. 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.
2. Identify the concepts of S corporation taxation by:
a. Recognizing the application of passive income taxation, accumulated adjustments accounts, built-in gains, net operating losses, tax preference items, and potential capital gains taxes,
b. Determining a shareholder’s stock basis from capitalization and loan activity,
c. Specifying the related party rules including their impact on deductions, available fringe benefits, and tax forms to use when filing as an S corporation.