Closely Held Corporation Problems for S & C Corporations

Description

Seminars in the S & C Corporation Series cover tax topics the apply to both S and C corporations (§1371(a)). Tax advisors will become aware of the problems that often arise when a shareholder of either a C or S corporation deals with his/her corporation.

Highlights

LINK AND INSTRUCTIONS TO COME FROM AES TAX ONE DAY PRIOR TO SESSION

Objectives

After completing this course the participant will be able to:

• Analyze the compensation problems for both a C corporation and an S corporation and illustrate when there might be too much or too little compensation.
• Describe the situations where losses are disallowed and gain may be recharacterized as ordinary income.
• Define §1244 stock.
• Illustrate the practical use of §1202 stock as well as the changes made by TOBBB.
• Determine when income or gain is subject to the 3.8% tax on net investment income.
• Compute self-charged interest; describe tax effect of below-market or no-interest loans.
• Determine the character of interest where funds are borrowed to purchase an interest or make a capital contribution.
• Describe the treatment of unreimbursed travel and entertainment expenses and the deductibility of qualified transportation fringe benefits.
• Distinguish between a business and nonbusiness bad debt when a shareholder loan becomes worthless.
• Describe the tax effect of guarantees of corporate debt by a shareholder or leasing a home office to the corporation, and how the passive loss rules apply to a C and S corporation.
• Illustrate the problems with capitalizing a corporation with debt or equity.
• Explain how the COD rules apply differently to a C corporation and an S corporation.
• Describe when a corporation might be subject to the personal holding company tax.