Description

Electing S corporations may find it desirable or necessary to terminate this election and convert to a C corporation. Alternatively, qualifying C corporations may determine the S status as the preferred tax status. With significant current and future tax considerations, terminating or electing S corporation status can be desirable. We'll consider situations when such conversions are desirable—identifying and discussing tax planning opportunities and complications at conversion.

Target Audience

CPAs and attorneys.

Course Objectives

• Discuss and analyze situations where terminating an S corporation election could be desirable
• Consider common situations where S-election may involuntarily terminate
• Understand the process and tax planning opportunities related to voluntary revocation
• Consider tax result from making the S corporation election—how and why
• Discuss built-in gain tax planning

Subjects

• Reasons to terminate an S corporation election
• Involuntary terminations
• Voluntary revocations the process and the consequences
• Tax planning opportunities related to the termination of S corporation status
• Complications arising from a mid-year termination
• Limitations on re-electing S corporation status
• Making the S corporation election how and why
• Built-in gain planning

Prerequisites

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