Surgent's Understanding S Corporation Taxation: Late S Corporation Elections, Disproportionate Distributions, and Selling Shares

Overview

S corporation taxation has a lot of pieces. There are helpful elections you can make that can potentially save your client money, but there are also rigid rules to adhere to. For example, if there is more than one class of stock, it can terminate the S corporation election. Learning how to successfully navigate these rules can make all the difference. In this course, we will discuss some of the more common specialty areas experienced by practitioners - late filing relief for S corporation elections, disproportionate distributions, and selling S corporation shares. While these items may not come up on every single Form 1120-S, you will be able to add more value to clients when they do.

Highlights

Making an S corporation election and late filing relief
Disproportionate distributions
Selling S corporation shares
Redemption rules

Prerequisites

Basic understanding of tax rules for flow-through entities

Designed For

Tax and financial advisors with clients who have formed S corporations

Objectives

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

Preparation

None

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

David Peters, CPA Crossings, LLC Two Commerce Square

Leader Bios

David Peters, CPA Crossings, LLC Two Commerce Square

David R. Peters, CPA, CFP, CPCU, MST, MBA Peters Tax Preparation & Consulting, Richmond, VA & Rock Hill, SC David Peters is an independent tax preparer for Peters Tax Preparation & Consulting, and a financial advisor and outside representative for Carroll Financial Associates. He has over fourteen years of experience in financial services, including three years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer of Compare.com, an insurance price comparison company - a position he held for over three years. He was also instrumental in the early success of Elephant Auto Insurance, a six state auto insurance carrier, located in Glen Allen, VA. He holds four masters degrees, and is currently pursuing his PhD in Financial Planning. He regularly teaches courses in accounting, finance, insurance, financial planning, and ethics in Virginia, North Carolina, and South Carolina. He is an Adjunct Professor in Finance and Accounting at Winthrop University in Rock Hill, SC, and teaches regularly for Kaplan Test Preparation. He contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures.

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