Certificate In S Corp Transactions

Agenda

• Recognize the factors to consider when evaluating the reasonableness of S-Corp shareholder compensation
• Recall which fringe benefits will result in additional W-2 income for S-Corp shareholders
• Calculate the Built-In Gains tax and Excess Passive Income Tax
• Identify the federal income tax implications of a PTE election at the state level

• Recall the rules for a late S-election
• Identify the tax implications of an S-Corporation making disproportionate distributions to S-Corp shareholders
• Recognize the tax rate applicable to the sale of S-Corporation shares

• Recognize the formula for calculating S-Corp Shareholder basis
• Identify the items of income and deduction that are allocated to AAA, PTI, AE&P, and OAA
• Calculate the tax effects of a distribution on shareholder basis and AAA