Field of Study:
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 corpo-ration 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.
After completing this course, you should be able to:
- 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, and
- Specifying the related party rules including their impact on deduc-tions, available fringe benefits, and tax forms to use when filing as an S corporation.
Recommended CPE credits:
General understanding of federal income taxation.
Type of delivery method:
QAS Self Study
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org