Self Study: S Corporations 2022

Overview

This course is available until April 30, 2025.

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

Downloadable PDF