S Corporations: Conversions 2024

Overview

Electing S corporations may find it desirable or necessary to terminate this election and convert to a C corporation. Alternatively, qualifying C corporations may determine the S status as the preferred tax status. With significant current and future tax considerations, terminating or electing S corporation status can be desirable. We’ll consider situations when such conversions are desirable-identifying and discussing tax planning opportunities and complications at conversion.

Highlights

• Reasons to terminate an S corporation election • Involuntary terminations • Voluntary revocations the process and the consequences • Tax planning opportunities related to the termination of S corporation status • Complications arising from a mid-year termination • Limitations on re-electing S corporation status • Making the S corporation election how and why • Built-in gain planning

Prerequisites

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

Designed For

CPAs and attorneys.

Objectives

• Discuss and analyze situations where terminating an S corporation election could be desirable • Consider common situations where S-election may involuntarily terminate • Understand the process and tax planning opportunities related to voluntary revocation • Consider tax result from making the S corporation election-how and why • Discuss built-in gain tax planning

Preparation

None