This course goes beyond the basics and addresses important practical issues that an experienced practitioner must know about S corporations.

Major Topics:

  • Detailed rules governing basis in the shareholder’s debt and stock
  • AAA
  • Built-in gains incurred from the sale of assets
  • Redemptions and liquidations
  • Compensation planning for shareholders

Learning Objectives:

  • Discuss the conversion of a C corporation to an S corporation
  • Examine operational issues, keeping track of AAA, and how to calculate basis, apply distribution rules, and avoid loss limitations
  • Describe the rules governing the liquidation of an S corporation
  • Examine the issues in compensation planning in S corporations, including limitations in a family-controlled business; self-employment tax issues

Designed For: CPAs whose practices include S corporations and their shareholders
Level of Knowledge: Advanced
Prerequisite: None
Advanced Preparation: None
Credits: 4