Course Description

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!

Learning Objectives

  • Recognize the factors to consider when evaluating the reasonableness of S-Corp shareholder compensation

  • Recall which fringe benefits will result in additional W-2 income for S-Corp 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.

Additional Required Materials

  • Level: Intermediate

  • Field of Study: Taxes (NASBA), Characteristics and income taxation of business entities (CFP), Federal Taxation (IRS)

  • Who Should Attend: Tax and financial advisors who have clients who have formed S-Corporations.

  • Required Knowledge: Basic understanding of tax rules for flow-through entities

  • Advanced Prep: None

Instructor

CPA, CPCU, MST, MBA David Peters

David Peters is the Founder and Owner of Peters Tax Preparation & Consulting in Richmond, VA. He has over fourteen years of experience in financial services, including 3 years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer at Compare.com - a position he held for over three years. He is a national CPE Instructor/Discussion Leader for the AICPA, Surgent, and Kaplan. He regularly teaches courses in accounting, finance, insurance, and ethics throughout the United States. He holds four Masters degrees and contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures. He was also a co-author of the 2018 Virginia CPA Ethics course – a required course for all CPA’s licensed in the Commonwealth of Virginia.