Course Description

Financial planning for a small business is inherently tied with the owner. When you plan for the future of the company, you are planning for the individual as well. Trying to get the owner additional cash from his/her company is a common issue faced by many advisors. However, it is important to realize that the form of that cash movement may result in very different tax implications. Using easy to understand examples and cases, this course will explore the common methods used to transfer cash from a small business to the owner him/herself. We will look at how the tax implications differ depending on entity type and the form of payment. 

Learning Objectives

  • Compare the basic tax implications of distributions from a C-Corporation, S-Corporation, and Partnership

  • Calculate the tax implications of cash distributions and property distributions from S-Corporations and Partnerships

  • Calculate tax basis for a partnership and an S-Corporation

  • Identify the factors that establish reasonable compensation, reasonable rent, and reasonable loans between a closely-held entity and its owner

Additional Required Materials

  • Level: Overview

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

  • Who Should Attend: CPAs and financial advisors who work with small business owners.

  • Required Knowledge: Fundamentals of corporate and pass-through entity taxation.

  • 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.