S Corporations: Qualification Requirements 2024

Overview

The use of an S corporation election can dramatically affect the tax consequences of owning a corporate business. This course focuses on the requirements that must be satisfied to make and retain this tax election.

Highlights

• 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 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

Prerequisites

None

Designed For

CPAs

Objectives

• Identify and discuss the requirements that must be satisfied to make the S corporation election • Recognize complications related to having trusts, 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

Preparation

None