Course Description

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.

Learning objectives

• Recognize the tax treatment of partnerships specifying advantages and disadvantages and their effect on income attribution
• Determine partnership income and reporting requirements by: Identifying filing requirements and the impact partnership K-1’s on individual or partner taxation; and Specifying loss deduction limitations and stating the tax treatment of guaranteed payments, organizational expenses, and other fees.
• Identify the tax treatment of contributions of property to a partnership under §721 and the impact on tax basis.
• Recognize the tax treatment of partnership distributions and sale of partnership interests by: Identifying the tax treatment of partner liabilities and of sales and exchanges of partnership interests and property; and Determining the differences between liquidating and nonliquidating payments including the definition of a partner’s basis on such an event.

Final examination expiration date:

The program participant will have one year from the date of purchase to complete the course and final examination.