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Course Details

S Corporations - Tax Mini Course (Course Id 140)

Updated / QAS / Registry / EA
  Add to Cart 
Author : Danny C Santucci, JD
Course Length : Pages: 31 ||| Review Questions: 15 ||| Final Exam Questions: 15
CPE Credits : 3.0
IRS Credits : 3
Price : $26.95
Passing Score : 70%
Course Type: NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents
Technical Designation: Technical
Primary Subject-Field Of Study:

Taxes - Taxes for Course Id 140

Description :

In this course, the intricacies of setting up and terminating an S corporation are detailed and taxation is discussed. The numerous advantages and disadvantages of this entity are identified to help practitioners determine whether the S corporation is most suitable for their clients. Eligible domestic corporations can avoid double taxation by electing to be treated as an S corporation under the rules of Subchapter S. Subchapter S provides an optional method of corporate taxation and allows small business corporations to elect unusual tax treatment. The S corporation is taxed like a partnership, but in other respects, S corporations are taxed like C corporations. 

Usage Rank : 15882
Release : 2023
Version : 1.0
Prerequisites : General understanding of federal income taxation.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : QAS Self Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 15-Jul-2023
NASBA Course Declaration : Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.
Approved Audience :

NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 140

Keywords : Taxes, S, Corporations, Tax, Mini, Course, cpe, cpa, online course
Learning Objectives :

As a result of studying the assigned materials, you should be able to meet the objectives listed below.


      At the start of the materials, participants should identify the following topics for study:

    * Advantages & disadvantages
    * S corporation status
    * Termination
    * Income & expense
    * Built-in gain
    * Passive income
    * Basis of stocks & debts
    * Distributions
    * Form 1120S
    * Fringe benefits
Learning Objectives:

      After reading the materials, participants will be able to:
    1. Recognize a client's potential use of the S corporation format and its tax advantages and disadvantages by citing the requirements for an S corporation election, identifying eligible S corporation shareholders, specifying the one-class-of-stock regulations, and determining the ways an S corporation election can be terminated.
    2. Identify the concepts of S corporation taxation by:
      a. Recognizing the application of passive income taxation, accumulated adjustments accounts, built-in gains, net operating losses, tax preference items, and potential capital gains taxes,
      b. Determining a shareholder’s stock basis from capitalization and loan activity,
      c. Specifying the related party rules including their impact on deductions, available fringe benefits, and tax forms to use when filing as an S corporation.
Course Contents :

Chapter 1 - S Corporations






Passthrough Entities - 20% Deduction

Becoming an S Corporation

S Corporation Status

Number of Shareholders

Individuals Only


Grantor Trusts

Voting Trusts

Testamentary Trust

Qualifying Simple Trusts

Electing Small Business Trusts


C Corporations

Tax-Exempt Entities

Exception for S Corporation ESOP - §512

One Class of Stock

Affiliated Groups & Subsidiaries

Prior Law

Current Law

Domestic Corporation

Election Requirement

Making the Election

Form 2553

Invalid S Elections


S Corporation Termination

Revoking the Election


Effective Date

Ceasing to Qualify

Effective Date

Passive Income - §1362

Effective Date

S Termination Year

Pro-Rata Allocation

Allocation Based On Normal Accounting Rules

Annualization of 1120 Short Year

Taxation of S Corporations

S Corporation Income & Expense

Separately Stated Items

Nonseparately Stated Items

Interest Expense on Debt-Financed Distributions

Tax Exempt Income

Net Operation Losses

Carryover of C Corporation NOLs

Reduction of Pass-Thru Items

Built-In Gain - §1374

Net Recognized Built-In Gain

Recognized Built-In Gains

Recognized Built-In Loss

Deduction Items

Amount of Tax


Net Operating Loss Carryovers

Treatment of Certain Property

Transfer of Assets

Passive Income - §1375

Gross Receipts

Sales or Exchanges of Stock or Securities

Passive Investment Income




Figuring the Tax on Excess Net Passive Income

Net Passive Income

Excess Net Passive Income

Special Provisions

Waiver of Tax

Tax Preference Items

LIFO Recapture Tax

Capital Gains Tax

Reducing Corporate Capital Gains

Figuring Corporate Taxable Income

Recapture of Investment Credit

Estimated Corporate Tax Payments

Basis of Stock & Debts

Adjustments to Basis

Limitation on Loss Deductions

Basis Limit

Adjustments to Stock Basis



Adjustments to Debt Basis

Restoring Basis of Loans

Loan Repayments


At-Risk Rules - §465

Reasonable Compensation

Related Party Rules

Definition of Related Party

Stock Attribution Rules

Business Expenses & Interest


Earnings & Profits

Accumulated Adjustments Account (AAA)

Dividend Election

Post-Termination Distributions

Transition Period

Order of Distribution

No Earnings & Profits

Appreciated Property Distributions

Taxable Year

Business Purpose

Change of Tax Year

Form 1120S


Late Filing

Reasonable Cause

Schedule K-1

Shareholder’s Treatment Of S Corporation Items

Pro-Rata Share

Optional 10-year Write-Off of Tax Preferences

Fringe Benefits

Health Insurance Premiums

Reporting Requirements

Medical Deduction



Tax CPE Courses: https://www.cpethink.com/tax-cpa-courses
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