June 13, 2022


Webinar


2 Total CPE Credits

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S Corporations: Qualification, Election and Termination

Learning Objectives

  • Identify and discuss the requirements that must be satisfied to make the S corporation election.
  • Recognize complications related to having trusted, 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.
  • Identify the process that must be followed to make the election, including when the election must be made and the consequences of a defective election.
  • Recognize tax planning opportunities related to voluntary termination.
  • Identify the possible application of the inadvertent termination rule to avoid an unplanned termination.
  • Recognize limitation on re-electing after a termination.

Major Topics

  • 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 a 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
  • Reasons for involuntary termination
  • How to voluntarily revoke an S corporation election
  • Why voluntarily revoke an S corporation election
  • Tax planning related to a planned termination.
  • Re-election after termination

CPE Credits Available

2
Total CPE
2
Taxes

Things to Know About This Course

Prerequisites

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

Advanced Preparation

None

Intended Audience

CPAs and attorneys.

Provider

California Society of CPAs

This event has ended.