S Corporations: Allocation of Results

Course Details

Date

Thursday, October 17, 2019

5:30am – 7:30am
(Registration: 5:00am)

Field of Study

Taxation

Course Number

4193335B

CPE Credit

2.0 hours CPE credit

Level of Knowledge

Overview

Vendor

CalCPA Education Foundation

Prerequisites

Understanding the basics of taxation of corporations, S corporations, and partnerships.

Description

Delve into topics focused on how the tax results of an S corporation are allocated among the shareholders.

The determination of the nature of the allocated items can dramatically alter the shareholder level tax consequences. When stock ownership changes during the S corporation's year, a complex set of rules determines the allocation among shareholders. Consider how these rules apply when new stock is issued, redeemed, or sold.

If there is a mid-year termination of the S election, the rules that determine the taxable income of the S corporation and C corporation can determine not only the amount of tax but also who bears the tax cost of operating the business. We will discuss these rules and the related tax compliance requirements.

 

Materials are provided as an ebook for this course.

Highlights

  • General approach to allocation of S corporation tax results to the shareholders
  • Separately stated and non-separately stated items determination and consequences
  • Allocation complications and related tax consequences when stock of the S corporation is sold
  • Special allocation rules when new stock is issued or outstanding stock is redeemed
  • Allocation of taxable income when the S Corporation election is terminated mid-year
  • Tax compliance responsibilities related to a mid-year termination of the S corporation status

Objectives

  • Determine the general approach of allocating the tax results of an S corporation to the shareholders.
  • Discuss the determination and consequence of "separately stated" items
  • Explain how stock sales affect the allocation of taxable income and the tax consequences of the stock sale.
  • Recognize the special allocation complications when new stock is issued or existing stock is redeemed.
  • Recognize the allocation and and tax compliance complications presented when the S corporation election terminates mid-year.

Designed For

CPAs and attorneys.

Course Pricing

Member Fee

Applicable if you are a HSCPA member in good standing.

$60.00
Non-Member Fee

Applicable if you are not a HSCPA member.

$94.00
Your Price $94.00

CPE Choice

Learn more about CPE Choice.
This course does not qualify for CPE Choice.

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