June 9, 2022


8 Total CPE Credits


S Corporations: Tax Planning Ideas and Strategies

Learning Objectives

  • Understanding the tax consequences of making the S corporation election to the corporation and shareholders.
  • Understand the application of the "qualified business income" deduction ( IRC 199A).
  • Determining the tax costs and benefits of making or terminating the S corporation election.
  • Identifying self-employment / FICA - Medicare tax planning opportunities.
  • Understanding how to plan to minimize the impact of the loss limitation rules.
  • Identifying tax planning opportunities in years with losses and distributions.
  • Understanding tax planning ideas when the S election is terminated.
  • Determining the tax considerations related to buying or selling an S corporation.
  • Determining when to make the QSUB, Section 338(h)(10), or 336(e) elections.
  • Identifying tax planning opportunities at the death of the shareholder of an S corporation.
  • Recall ideas to accommodate a "non-qualified" investor.
  • Understanding the law related to trusts and tax-exempt shareholders including ESOP's.
  • To be able to evaluate the risk of disqualification based on the second class of stock.
  • S corporation election compared to the Section 1202 stock tax incentive.

Major Topics

  • Overview of the taxation of corporations and shareholder including making the S corporation election
  • The decision to elect S corporation status-factors to consider
  • Explanation and analysis of the application of the "qualified business income deduction (IRC 199A)
  • Self-employment tax and S corporations
  • Distribution tax planning
  • Planning to minimize the impact of loss limitations
  • Tax planning for years with both distributions and losses
  • Termination Planning
  • Tax planning regarding the transfer of appreciated assets to an S corporation
  • Buying and selling S corporations-tax planning ideas
  • Tax considerations of using the QSUB, Section 338(h)(10), or 336(e) elections
  • Tax Issues to consider at the death of S corporation shareholder
  • Stock redemptions as a tax planning tool
  • Accommodating a "non-qualified" investor
  • Trusts and tax-exempt exempt shareholders
  • The second class of stock risks
  • S corporation election compared to Section 1202 stock incentive

CPE Credits Available

Total CPE

Things to Know About This Course


Basic understanding 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.