S Corporations Series | CalCPA

This series explores the advantages and disadvantages of S corporations, and the many complexes of these entities need to navigate.

Instructor: John G. McWilliams, CPA, Esq., J.D.


Allocation of Results

The determination of the nature of the allocated items can dramatically alter the shareholder level tax consequences. When stock ownership changes during the S corporation's year, a complex set of rules determines the allocation among shareholders. Consider how these rules apply when new stock is issued, redeemed, or sold.

  • Time: 10 a.m.-Noon
  • Credits: CPE 2, MCLE 2, IRS-TX 2, CTEC-TX 2
  • Dates: Nov 23 | Jan 5

Distributions, Stock Basis and Loss Limitations

Making the S election avoids double taxation for corporate operations after the election is effective. Consider the special rules related to adjusting the stock adjusted basis, distributions and loss limitations.

  • Time: 10 a.m.-Noon
  • Credits: CPE 2, MCLE 1.5, IRS-TX 2, MCLE LS-TX 2, CTEC-TX 2
  • Dates: June 11 | Nov 24 | Jan 12

Qualification, Election and Termination

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

  • Time: 10 a.m.-Noon
  • Credits: CPE 2, MCLE 1.5, IRS-TX 2, MCLE LS-TX 1.5, CTEC-TX 2
  • Dates: June 18 | Dec 7 | Jan 19

Built in Gain Tax

When an existing corporation considers making the S corporation election, the potential corporate-level 'built-in gain tax' (IRC 1374) is often the most important tax cost to evaluate. Learn when and how the built-in gain tax is determined.

  • Time: 10 a.m.-Noon
  • Credits: CPE 2, MCLE 1.5, IRS-TX 2, MCLE LS-TX 1.5, CTEC-TX 2
  • Dates: June 25 | Dec 14 | Jan 26

Converting to C Corporation

Electing S corporations may find it desirable or necessary to terminate this election and convert to a C corporation. We'll consider situations when such a conversion is desirable.

  • Time: 10 a.m.-Noon
  • Credits: CPE 2, MCLE 1.5, IRS-TX 2, MCLE LS-TX 1.5, CTEC-TX 2
  • Dates: July 9 | Dec 21 | Feb 2

QSUB Elections

Consider the factors that determine whether a QSUB election should be made. Discuss topics covering both immediate and long-term tax consequences and the process necessary to make the election.