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S Corporation Fundamentals - Tax Staff Essentials

Author/Moderator: Gregory B. McKeen, CPA
Publisher: AICPA
Availability: Online Access
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This CPE course is a comprehensive introduction to the nature of S Corporations and how they are treated for income tax purposes. You will examine some of the advantages and disadvantages of incorporation and then go through the requirements for electing to be an S Corporation. You will also review the rules for operating an S Corporation.

Key Topics

  • Why elect Subchapter S
  • S corporation qualifications
  • S corporation election
  • Termination of S corporation status
  • Tax on S corporation built-in gains
  • S corporation pass-through activity to shareholders
  • Shareholder basis and losses
  • Distributions
  • Taxable year options
  • S corporation passive activity rules, fringe benefits, and other considerations
Learning Objectives

This course will prepare you to:

  • Determine when an S corporation may be advantageous for a business
  • Identify the potential disadvantages to operating as an S corporation
  • Identify the requirements that must be met to qualify as an S corporation
  • Recognize individuals and entities that are eligible to own S corporation stock
  • Determine how to make a proper S corporation election
  • Determine when the S election becomes effective
  • Identify who must consent to the election
  • Identify causes of voluntary and involuntary termination
  • Identify revocation of the election
  • Recognize events causing involuntary termination
  • Recall methods of allocating income for the short years caused by a termination
  • Determine whether an S corporation is subject to tax.
  • Calculate the tax on built-in gains
  • Determine income or loss that passes through to the shareholder
  • Identify the items of income, gain, loss, and deduction that adjust basis of shares and indebtedness and the order of application of the items
  • Determine how losses can be offset by debt basis after stock basis has been reduced to zero
  • Identify the concept of distributions
  • Determine how accumulated earnings and profits (AE&P), accumulated adjustments account (AAA), other adjustments account (OAA), and the shareholder’s basis are affected by distributions
  • Determine permitted fiscal years, elections, and user fees
  • Identify situations in which a fiscal year is allowable.
  • Recognize when a Section 444 election and resulting required payments should be made
  • Recognize active and passive income and determine material participation
  • Determine whether and to what extent passive losses can be deducted against other income
  • Identify which fringe benefits are deductible by the shareholders

Who Will Benefit?
Staff and senior associates in public accounting who assist clients with tax compliance for closely held S Corporations

Prerequisites: None

Advance Preparation: None

Tax Section Members Receive Additional Savings! 

When you log into this website with your AICPA member user account, the section/credential discount will be automatically applied during checkout. Should you have any questions or encounter any issues, please contact the AICPA Service Center at 888-777-7077 or service@aicpa.org.

Find out more information on the Tax Section.

NASBA Field of Study: Taxes
Level: Basic
Recommended CPE Credit: 10.5
S Corporation Fundamentals - Tax Staff Essentials
CPE On-Demand , 2016
Product# 157612
Availability: Online Access 1 Year
For registered users only
Regular:$209.00
AICPA Member:$169.00
Your Price:$209.00
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