Understanding S Corporation Taxation: Compensation Issues and Entity-Level Taxes

Overview

You could pay $0 for this course!

This course qualifies for EA/IRS and CFP credit. If you need EA/IRS credit, please contact Tyler Dion (tdion@masscpas.org) after you have registered and provide him your PTIN number.

Even though they have been around for several years, the tax laws pertaining to S corporations remain some of the more difficult areas of the Internal Revenue Code. In this course, we will examine how S corporations break away from the normal tax rules for flow-through entities. We will explore which employee benefits are disallowed for S corporation shareholders, as well as which taxes are assessed at the entity level. Finally, we will discuss how state level taxation may have changed permanently with the addition of PTE elections.

This course qualifies for reimbursement through the state’s Workforce Training Express Fund. Firms/companies with fewer than 50 staff can be reimbursed up to 100% of the cost of training and firms/companies with 50-100 employees can be reimbursed up to 50% of the cost of training. You must register for the course and apply for reimbursement through the Workforce Training Express Fund website a minimum of three weeks prior to the start of the course. The course code for this program is C-13022. To learn more, click here or contact Julia Ekelund at jekelund@masscpas.org.

Highlights

Reasonable compensation Fringe benefits for S corporation shareholders Built-in gains tax Excess passive income tax Notice 2020-75: PTE elections

Prerequisites

None

Designed For

Tax and financial advisors with clients who have formed S corporations

Objectives

Recognize the factors to consider when evaluating the reasonableness of S corporation shareholder compensation Recall which fringe benefits will result in additional W-2 income for S corporation shareholders Calculate the built-in gains tax and excess passive income tax Identify the federal income tax implications of a PTE election at the state level