Pat Garverick's S Corporation (Form 1120S) – Formation to Liquidation

Overview

With the increasing complexity and ever-changing nature of tax laws and issues, today’s accountant needs a S corporation course focusing on the birth, growth, maturity, and death of a closely held S corporation. This case driven course will deal with S corporation income tax laws from formation to liquidation.

Highlights

This class will review S corporation tax law by looking at case studies addressing issues and problems at both the S corporation and shareholder level. Each attendee will receive the most comprehensive reference manual with numerous practice aids and real-world examples and case studies. Topics include but are not limited to:

Extensive review of the S corporation tax laws with an emphasis on any new legislative changes

Requirements to make an S election (i.e., types and numbers of shareholders and second class of stock issues)

Fixing late S corporation elections (i.e., Form 2553)

S corporation formation (351) and liquidation issues

Revocation and termination of S corporations

Schedule K and K-1 - separately stated versus non-separately stated income and expense items

Detailed Schedule K-1 reporting including the 20% qualified business income (QBI) deduction and 3.8% net investment income tax

Compensation issues including the tax treatment of fringe benefits

Built in gains tax and other planning opportunities when converting a C to S corporation

Preparation of the Schedule M-2 and the ordering rules for distributions out of the AAA, PTI, E&P and OAA accounts

Tax treatment of stock redemptions (sale or distribution?)

Prerequisites

Background in S corporation and individual income tax law

Designed For

Tax professionals (in public or private industry) seeking a case driven income tax return course addressing many common, yet complex Federal S corporation issues and problems.

Objectives

Once participants have completed this session, they should be able to:

Form a S corporation and calculate the entity's initial inside basis in the assets and shareholder's stock basis

Understand the operational issues during the growth and maturity of a S corporation and how the schedule K items get allocated to the shareholders on their individual Schedule K-1 effecting stock and debt basis

Prepare a Schedule M-2 and determine how distributions are treated to the shareholders

Comprehend the tax ramifications of liquidating a S corporation and the sale versus redemption of a shareholder's stock

Fees

Code

Credits

Level

Vendor

Fields of Study

Leader(s):

Patrick Garverick, Pat Garverick's The Tax U

Leader Bios

Patrick Garverick, Pat Garverick's The Tax U

J. Patrick (Pat) Garverick is a Certified Public Accountant (CPA) who began his career in public accounting in 1988 after obtaining his Bachelor of Science in Business Administration (BSBA) in Accounting from The Ohio State University. After receiving his Master of Taxation (MT) degree from Arizona State University in 1992, Mr. Garverick began operating his own tax and financial planning business. He also started writing, reviewing, and teaching tax and financial planning continuing professional education courses around the country. In addition to being a CPA, Pat is also a Certified Financial Planner (CFP). Pat has presented continuing education sessions since 1993 throughout the country and has won awards for both his skills as an instructor as well as for the content he has created. During his time in college Pat earned a letter as a member of the Ohio State Basketball squad. He remains a stanch supporter of the sports programs at his alma mater.

(3/19/21)

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