June 8, 2022


2 Total CPE Credits


S Corporations: Built-in Gain Tax

Learning Objectives

  • Identify when the built-in gain tax could apply.
  • Calculate the built-in gain tax including the application of three "limitations."
  • Recognize the nature of the built-in gain tax, "current mandatory double taxation."
  • Recognize tax planning techniques to minimize or eliminate the built-in gain tax.

Major Topics

  • Identification of facts that could cause the imposition of the built-in gain tax
  • The calculation of the tax on "net recognized built-in gain" during the "recognition period"
  • The meaning of "current mandatory double tax"
  • The aggregate limitation based on "net unrealized built-in gain"
  • The limitation based on the "gain" that existed at conversion
  • The importance of valuation analysis at conversion
  • The taxable income limitation
  • Using existing corporate net operating losses and tax credits
  • Tax planning ideas and strategies to minimize or avoid the tax on the built-in gain

CPE Credits Available

Total CPE

Things to Know About This Course


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

Advanced Preparation


Intended Audience

CPAs and attorneys.


California Society of CPAs

This event has ended.