This comprehensive two-day course provides accountants with tax training on closely held C corporations including incorporation issues and procedures, tax accounting periods and methods, multiple corporations, PSCs, PHCs, an introduction to the manufacturersÂ’/ producersÂ’ deduction, overview of dividends and earnings and profits, fringe benefits, and compensation issues. Regular C corporation taxation, frequently encountered book-tax differences, selected business tax credits, and corporate AMT are covered.

Major Topics:

  • Tax-free incorporation procedures under §351, and review of the amortization rules for startup expenditures and organization expenses
  • Income and expense items receiving special treatment for tax purposes
  • Introduction to employee fringe benefits, pension and profit-sharing plans (including SEPs, SIMPLEs, regular and Roth 401(k)s, HSAs, and cafeteria plans)
  • Compensation issues, taxable employee benefits, below-market rate loans, company-owned autos, and unreasonable compensation issues
  • How the Affordable Care Act affects tax returns
  • The importance of Schedule M-1, and how the return reviewer will focus upon it
  • Alternative minimum tax including AMT and ACE adjustments
  • Dividend distributions and E&P computation
  • Personal service corporations – four special rules
  • Multiple corporations – identify brother-sister corporations and apply special rules
  • Personal holding company penalty taxes
  • Form 4797 – Sale of Assets used in Trade or Business
  • Form 8594 reporting requirements when a business is sold -
  • Accounting periods and methods available
  • The benefits of §1202 and §1244 stock gains and losses
  • Overview of the §199 QPAI (Qualified Production Activity Income) Deduction for manufacturers and producers
  • Certain tax credits including the AMT credit
  • Numerous M1 adjustments in reconciling book income to tax income

Learning Objectives:

  • Understand major issues in preparing Form 1120
  • Understand the purpose and importance of Schedule M1 and the root of its adjustments
  • Understand many fringe benefits available to C corporations

Designed For: Staff desiring more than just simple preparation overview, rather than those wanting to dig into the details for two days of comprehensive study of family owned corporations and its owners
Level of Knowledge: Basic
Prerequisite: None
Advanced Preparation: None
Credits: 8