Advanced S Corporation Tax Workshop (684)

General Description:

This course is designed to deal with many of the operating issues and planning ideas available to a business operating as an S corporation, including IRS audit issues and common problems associated with a C corporation that has recently elected S corporation status.

Learning Objectives:

After completing this course the participant will be able to:

• Discuss the problems associated with one-class-of-stock rules and the check-the-box regulations.
• Describe issues related to compensation and fringe benefits, including compensating an employee with an ownership interest in the S corporation.
• Explain problems and pitfalls in allowing a trust to hold S corporation stock, including an ESBT and QSST, as well as advising that a marital trust make either an ESBT or QSST election.
• Identify specific problems with S corporation loans and stock basis, net negative adjustment, and AAA, including maximum amount of loss deductible under the basis and at-risk rules, repayment of debt, guarantee of corporate debt, and corporate distributions with and without sub-C earnings and profits, as well as reporting the K-1 items on Form 7203.
• Discuss the treatment of S corporation cancellation of debt (COD) income.
• Discuss the passive loss rules and the self-charged interest rules and the calculation of qualified business income under §199A.
• Discuss the practical problems that may be encountered if the S corporation operates in one of the 36 states which has enacted the PTE election.
• Discuss strategies for minimizing the built-in gains tax.
• Calculate the tax on excess net passive income.
• Use the stock redemption rules to the advantage of the S corporation shareholder.
• Discuss the liquidation of an S corporation, including the §338(h)(10) election and the §336(e) election.
• Discuss using an F reorganization to facilitate the sale of an interest in an S corporation.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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