S Corporation Taxation Concepts and Planning Strategies: Part 1 (Currently Unavailable)

Author: James R. Hamill

The most popular form of business entity is the S corporation. S corporations create special reporting and transactional issues because they follow the “entity” approach applicable to all corporations. The tax result can be a combination of provisions found in subchapter C and subchapter S. For this reason, although both partnerships and S corporations are flow through entities, the tax result of similar transactions can be very different in the two entity types. This session is “Part I” of a two-part program on the taxation of S corporations and their shareholders. This session will review many of the basic provisions of subchapter S and will help prepare both staff and management for dealing with more complex tax concepts applicable to both S corporations and their shareholders. In this four-hour course, nationally recognized tax expert and instructor James Hamill, CPA, Ph.D., will explain the taxation of S corporations by use of commonly encountered transactions. The session will generally follow a “life cycle” approach, beginning with a review of what “entity” concepts mean and then leading into the formation of an S corporation. It will then begin to address common transactions that S corporations engage in during their “lives.”

Publication Date: December 2021

Designed For
Experience with S Corporation Tax Returns.

Topics Covered

• Entity Approach
• S election mechanics
• Curing defective elections
• Types of permitted shareholders
• Single class of stock and capital structure issues
• Straight debt uses and requirements
• Formation tax issues — corporation and shareholder
• Allocations of Profit and Loss
• Allocations when ownership changes
• Separately-stated items
• Distributions from S corporations
• Redemptions of S corporation stock
• PPP loan issues — deductions, basis adjustments, AAA

Learning Objectives

• Determine the consequences of forming an S corporation
• Identify key tax reporting issues
• Describe how to select an accounting period
• Identify how to articulate allocations of profit and loss
• Determine how to structure liabilities to create basis
• Recognize how to explain the rules affecting S corporation distributions
• Describe the entity approach and why it matters
• Identify what applies regarding the single class of stock, "mix ups" not caused by governing provisions may be acceptable, provided some corrective action is taken
• Recognize which form is used to elect to be treated as an S Corporation
• Recognize which form is used to treat one or more of its eligible subsidiaries as a qualified subchapter S subsidiary
• Identify what is a consideration when converting a C Corporation to an S Corporation
• Describe how many levels of tax S Corporations have
• Recognize which type of tax is intended to preserve the corporate-level tax attributable to a former C corporation

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
None

Advance Preparation
None