CS: Personal Holding Company Tax and Form 1120PH for C Corporations (256)

General Description:

Seminars in the C Corporation Series cover tax topics that apply specifically to C corporations. The participant will acquire an understanding of how to calculate the personal holding company (PHC) tax and, if applicable, how to avoid this penalty tax.

Learning Objectives:

After completing this course the participant will be able to:

• Define personal holding company.
• Determine the likelihood of a legitimate operating company being subject to the PHC tax.
• Identify when the PHC tax applies to an S corporation.
• Define:
• Adjusted ordinary gross income;
• Personal holding company income;
• Personal service income;
• Ordinary gross income;
• Adjusted income from rents;
• Consent dividends;
• Dividends paid.
• Determine when to use a consent dividend for a C corporation in order to avoid the PHC tax.
• Illustrate the use of a deemed dividend election for an S corporation.
• Describe the tax effect of a dividend paid after the close of the taxable year.
• Calculate undistributed personal holding company income and discuss the deductibility of taxes, capital gains, charitable contributions, and net operating losses.
• Apply the constructive ownership rules to a personal holding company.
• Differentiate between the treatment of distributions under §316(b)(2) and §562(b)(2).

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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