SCo: Operations for S Corporations (464)

General Description:

This course is designed to illustrate the various operational rules that apply to an S corporation, including the various elections that are available in the computation of taxable income, completing the Form 1120S, and issuing the Schedule K-1s to the shareholders.

Learning Objectives:

After completing this course the participant will be able to:

• Identify the different taxable years that are available to an S corporation.
• Identify when an S corporation is restricted to the accrual method.
• Identify the list of separately stated items on the Schedule K and Schedule K-1.
• Describe the different elections which are available to an S corporation, including the §179 election, the election under Reg. §1.263(a)-1(f), and the PTE election.
• Discuss the different methods which are available to allocate items of income, gain, loss, and deduction, including the rules that apply when a shareholder disposes of its interest in the S corporation and the events that will trigger a qualifying disposition under Reg. §1.1368-1(g).
• Identify the fringe benefits that are available to a shareholder of an S corporation and the proper treatment of the payment of health insurance premiums, including the rules for health insurance under Qualified Small Employer Health Reimbursement Arrangements.
• Identify reasonable compensation and how to cure the common problem of no ­compensation.
• Discuss the PTE election, how to calculate PTE taxable income, and how much of the PTE tax is deductible as a §162 trade or business expense.
• Describe the deduction under §199A for a qualified trade or business.
• Prepare a Form 1120S.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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