S Corporations: Built in Gain Tax Webcast | 4173332B

Date :
December 4, 2017 10:00 AM - 12:00 PM
Location :
Facility :
Webcast Rebroadcast
Level of Difficulty :
Member Price :
Nonmember Price :
CPE Credits :
CPE 2.00, MCLE 1.50
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When an existing corporation is considering making the S corporation election, the potential corporate level "built in gain tax" ( IRC 1374) is frequently the most important tax cost to evaluate. Focus on describing when and how the built in gain tax is determined. Discuss topics that include the application of multiple "limitations" on determining the tax and the potential use of existing corporate net operating losses and tax credits. Identify and evaluate tax planning ideas and strategies.

Materials are provided as an ebook for this course.


  • Identify when the built in gain tax could apply.
  • Calculate the built in gain tax including application of three "limitations."
  • Recognize the nature of the built in gain tax, "current mandatory double taxation."
  • Recognize tax planning techniques to minimize or eliminate the built in gain tax.

Major Subjects:

  • Identification of facts that could cause the imposition of the built in gain tax
  • The calculation of the tax on "net recognized built in gain" during "recognition period"
  • The meaning of "current mandatory double tax"
  • The aggregate limitation based on "net unrealized built in gain"
  • The limitation based on the "gain" that existed at conversion
  • The importance of valuation analysis at conversion
  • The taxable income limitation
  • Using existing corporate net operating losses and tax credits
  • Tax planning ideas and strategies to minimize or avoid the tax on built in gain

Advanced Prep:


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Level of Difficulty:
Field of Interest:

Understanding the basics of the taxation of corporations, S corporations and partnerships.

Designed For:

CPAs and attorneys with at least two years of experience advising privately owned business.


John G McWilliams, CPA, Esq, Esq.

John McWilliams, CPA, Esq. is professor of accounting at Golden Gate University. Previously he was a professor of accounting at San Francisco State University. He began his career as a tax adviser with a Big Four CPA firm. For more than 30 years, while teaching, he has been a tax adviser to lawyers and CPAs regarding the tax matters of their clients. His areas of expertise include tax issues related to buying and selling privately-held businesses, financially-troubled businesses, business restructuring and reorganization, and ownership succession to employees or family members.

McWilliams has been active in CalCPA, having served as president of the San Francisco Chapter, chair of the Financial Literacy Initiative, member of the CalCPA Board of Directors serving as Vice Chair, and member of the Accounting Education Committee. He has served as a California representative to the AICPA Council, and as a member of two AICPA Tax Division Technical Resource Panels (Corporations, and Shareholders and Partnerships). McWilliams is the original author of two chapters of the CCH Expert Treatise Library: “Federal Taxation of Corporations,” and “Shareholders.”

No Agenda or Materials posted.