Personal Holding Company Tax and Form 1120PH for C Corporations

Description

This course covers tax topics specifically to C corporations. The participant will acquire an understanding of how to calculate the personal holding company (PHC) tax and, if applicable, how to avoid this penalty tax.

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:

• Define personal holding company.
• Determine the likelihood of a legitimate operating company being subject to the PHC tax.Identify when the PHC tax applies to an S corporation.
• Define:
• - Adjusted ordinary gross income;
• - Personal holding company income;
• - Personal service income;
• - Ordinary gross income;
• - Adjusted income from rents;
• - Consent dividends;
• - Dividends paid.
• Determine when to use a consent dividend in order to avoid the PHC tax.
• Illustrate the use of a deemed dividend election for an S corporation.
• Describe the tax effect of a dividend paid after the close of the taxable year.
• Calculate undistributed personal holding company income and discuss the deductibility of taxes, capital gains, charitable contributions, and net operating losses.
• Apply the constructive ownership rules to a personal holding company.
• Differentiate between the treatment of distributions under §316(b)(2) and §562(b)(2).