S Corporations - Mini CourseCode: 25-SCORP2

Course Objectives:

After reading the materials, participants will able to:

1. Analyze a client's potential use of the S corporation format by listing its tax advantages and disadvantages, describing the requirements for an S corporation election, identifying eligible S corporation shareholders, explaining the one-class-of-stock regulations, and pointing out the ways an S corporation election can be terminated.

2. Explain the operation of S corporation taxation by:

a. Describing the application of passive income taxation, accumulated adjustments accounts, built-in gains, tax preference items, and potential capital gains taxes,

b. Determining a shareholder's stock basis from capitalization and loan activity,

c. Discussing the related party rules including their impact on deductions, available fringe benefits, and tax forms to use when filing as an S corporation.