S Corporations: S Corporations and Shareholder Relationships FLEXCAST
Available Until
Your Desk
1.0 Credits
Member Price $49.00
Non-Member Price $56.00
Overview
Shareholder transactions are where S corporations most often go sideways. Especially when distributions, compensation, and related-party deals blur together. In this course, Robert Jamison walks through how shareholder stock and debt basis governs whether distributions are tax-free, basis-reducing, or taxable, including what happens when distributions exceed basis and trigger gain recognition. This course also gives practical guidance on the relationship side of the S corporation: how retained earnings tax accounts change distribution character, how the IRS reclassifies purported distributions as wages when compensation is unreasonably low, and how common back-and-forth transactions create planning opportunities and audit risk if misstructured.
Highlights
S Corporation. Distributions. Compensation. Property ownership and usage. Loans back and forth.
Prerequisites
None.
Designed For
CPAs and tax professionals.
Objectives
Determine how shareholder stock basis impacts the tax treatment of S corporation distributions, including distributions in excess of basis. Apply post-1996 ordering concepts for basis adjustments when income, losses, and distributions interact during the year. Identify the major S corporation retained earnings tax accounts and explain how they affect the character of distributions. Evaluate reasonable compensation risk for shareholder-employees and recognize fact patterns where the IRS may recharacterize distributions as wages. Recognize tax considerations and compliance risks in common shareholder-to-corporation transactions, including property rentals and loans between the parties.
Preparation
None.
Notice
This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.
Leader(s):
Leader Bios
Robert Jamison
Robert W. Jamison, CPA, PhD, is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His principal area of specialization is S Corporations. He is the author of S Corporation Taxation, and co-author of Multistate Tax Guide to Pass Through Entities, both of which are published annually by CCH, a Wolters Kluwer business. His articles have appeared in various publications including: Practical Tax Strategies, Journal of Passthrough Entities, The Tax Adviser, Journal of S Corporation Taxation, and The Journal of Accountancy. Professor Jamison has taught many professional education programs for national and local accounting firms and has developed material used in their continuing education programs. He has been a lecturer in AICPA programs and has authored several AICPA tax courses. He is a chapter author in the Van-Griner Taxation Series of textbooks. He is a regular contributor to the Land Grant University Tax Education Foundation, Inc. National Income Tax Workbook. He presents advanced and update S Corporation seminars for various states’ CPA societies and to other professional organizations.
Non-Member Price $56.00
Member Price $49.00