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S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level. This program focuses on the unique tax treatment of S corporations beginning with the eligibility requirements for S corporations. It includes how a taxpayer can use an S
corporation to save income taxes and payroll taxes. It explains how distributions and losses can affect a taxpayer's basis in S corporation stock and debt differently.
Key Learning Objectives- The requirements a corporation must meet to be an S corporation
- The requirements a corporation must meet to be a qualified S corporation subsidiary (QSub)
- The characteristics of S corporations, including limited liability and how to maintain it by not having the corporate veil pierced
- How to transfer assets to an S corporation without incurring a tax liability
- The tax effects of transferring services for stock in the S corporation
- The tax effects of transferring assets to an S corporation in exchange for its debt
- How to make the election to be an S corporation and what to do if the election is late or faulty
- The tax year an S corporation must generally use and exceptions to the general rule
- The income tax treatment of S corporations
- How shareholders in an S corporation can transfer stock in the S corporation to family members to split income
- The tax treatment of operating losses of the S corporation
- The tax treatment of distributions from an S corporation
- How to avoid an inadvertent termination of the S election
- The two ways to sell a business operated as an S corporation
- The tax treatment of the liquidation of an S corporation
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 | Alan D Campbell
Mr. Campbell is a Certified Public Accountant in the states of Arkansas and Florida. He is also a Certified Management Accountant, and he is admitted to practice before the United States Tax Court. He is a member of the American Institute of Certified Public Accountants and the Institute of Management Accountants. | | View More |
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