S&C: Operational Issues for S and C Corporations

General Description:

Seminars in the S & C Corporation Series cover tax topics that apply to both S and C corporations (under §1371(a), the same rules that apply to a C corporation also apply to an S corporation and its shareholders, except where they are inconsistent). The participant will gain an understanding of the rules that apply in calculating a C corporation's taxable income and tax liability and an S corporation's taxable income.

Learning Objective:

After completing this course the participant will be able to:

• List the restrictions on taxable years and exceptions to required tax years.
• Describe restrictions on using the cash method and the rules that allow more C corporations to use the cash method (§448 and §471(c)).
• Discuss the aggregation rules of §52 and how it relates to §448.
• Define §1202 stock and §1244 stock.
• Describe the self-rental rules as they apply to a C and S corporation.
• Describe the self-charged interest rules as they apply to a C and S corporation.
• Determine the character of the interest when using a HELOC to purchase stock in a C or S corporation.
• Calculate taxable income for a C corporation, including:
  • The dividends received ­deduction;
  • Treatment of organizational expenses and start-up costs;
  • Limit on charitable contributions;
  • Capital losses;
  • Net operating losses;
  • The all-events test for an accrual method taxpayer and when accrued expenses are deductible;
  • Compensation problems.
• Illustrate common problems of closely held organizations, including the calculation of the Personal Holding Company tax.
• Prepare a Form 1120 and a Form 1120S.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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