S Corporations: Allocation of Results Webinar

Determine the general approach of allocating the tax results of an S corporation to the shareholders.Discuss the determination and consequence of "separately stated" itemsExplain how stock sales affect the allocation of taxable income and the tax consequences of the stock sale.Recognize the special allocation complications when new stock is issued or existing stock is redeemed.Recognize the allocation and and tax compliance complications presented when the S corporation election terminates mid-year.
Highlights
Delve into topics focused on how the tax results of an S corporation are allocated among the shareholders.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.If there is a mid-year termination of the S election, the rules that determine the taxable income of the S corporation and C corporation can determine not only the amount of tax but also who bears the tax cost of operating the business. We will discuss these rules and the related tax compliance requirements.