S Corporations: Qualification Requirements 2024
1.00 Credits
Member Price $49
Non-Member Price $59
Overview
The use of an S corporation election can dramatically affect the tax consequences of owning a corporate business. This course focuses on the requirements that must be satisfied to make and retain this tax election.
Highlights
- Qualified shareholder requirement
- Trusts as shareholders
- Estates as shareholders
- Qualified tax exempt shareholders
- Tax planning ideas to accommodate economic investments by disqualified investors
- Special rules for counting the number of shareholders
- One class of stock requirement
- Indirect preferences creating risk of failing one class of stock requirement
- Disqualified corporations
- Making an effective S corporation election
- Relief for late or defective elections
- Inadvertent termination relief for involuntary terminations
Prerequisites
None
Designed For
CPAs
Objectives
- Identify and discuss the requirements that must be satisfied to make the S corporation election
- Recognize complications related to having trusts, estates, tax-exempt and ESOP shareholders
- Review and application of the one class of stock requirement to accomplish continued qualification
- Determine tax planning ideas to accommodate economic participation by disqualified investors
Preparation
None
Leader(s):
Leader Bios
John McWilliams, CalCPA Education Foundation
<b.John McWilliams, CPA, JD, is Professor of Accounting at Golden Gate University. Previously he was a Professor of Accounting at San Francisco State University. He began his career as a tax adviser with a Big Four CPA firm. For more than 30 years, while teaching, he has been a tax adviser to lawyers and CPAs regarding the tax matters of their clients. Areas of expertise include tax issues related to buying and selling privately held businesses, financially troubled businesses, business restructuring and reorganization and ownership succession to employees or family members. Mr. McWilliams is active in CalCPA, having served as president of the San Francisco Chapter, chair of the Financial Literacy Initiative, a member of the CalCPA Board of Directors serving as Vice Chair. He is currently a member of the Taxation Committee, the Financial Literacy Committe, and the Accounting Education Committee. He has served as a California representative to the AICPA Council and is currently a member of the AICPA Financial Literacy Commission. Mr McWilliams is author of two chapters of the CCH Expert Treatise Library : Federal Taxation of Corporations & Shareholders.
Non-Member Price $59
Member Price $49