Business Entities

PROGRAM CONTENT

This course provides continuing professional education (CPE) for tax professionals to address taxation, basis, and reporting issues for C corporations, S corporations, and partnerships. Problems with organization and administration of these business entities are examined by use of court decisions and examples that illustrate how tax rules apply in real-life situations, with focus on distributions from the business entity to individuals with an ownership interest.

CPE CREDIT HOURS

3 Credit Hours. One 50-minute period equals one CPE Credit Hour.

LEARNING OBJECTIVES

• C Corporations
  • 1-A Compute the recognized gain for nontaxable transfers to corporations under IRC section 351.
  • 1-B Identify the reporting requirements of a section 351 transfer.
  • 1-C Determine the tax treatment of loans between shareholders and C corporations.
  • 1-D Recognize the effect of earnings and profits (E&P) on corporation distributions.
  • 1-E Determine how to report stock distributions from C corporations.
• S Corporations
  • 2-A Identify rules for making the election to be taxed as an S corporation.
  • 2-B Recognize how to request relief for a late S corporation election.
  • 2-C Identify the effect distributions have on an S corporation shareholder's basis.
  • 2-D Determine the taxability of S corporation distributions.
  • 2-E Recognize events that will cause an S corporation election to terminate.
• Partnerships
  • 3-A Identify separately stated items of partnership income or loss.
  • 3-B Identify how to report separately stated items on Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc.
  • 3-C Identify recourse liabilities of partnerships.
  • 3-D Determine the effect of partnership liabilities on a partner’s basis in the partnership.
  • 3-E Determine gain or loss on distributions made to a partner.

RECOMMENDED PARTICIPANTS

Tax professionals who prepare business income tax returns and/or individual income tax returns with Schedule K-1s from either partnerships or S corporations are encouraged to participate in this course.

PROGRAM LEVEL

Intermediate. This course provides information on a knowledge level that builds on a basic program and will be most beneficial for tax professionals with detailed knowledge in the area. Such persons are often mid-level personnel with operational and/or supervisory responsibilities.

*All CE hours issued by The Tax Book