S Corporation Answer Book, Tenth Edition

List of Questions

Chapter 1 Qualifying as an S Corporation

• Basic Considerations
• Ownership and Business Considerations
• Capital Structure
• Organization and Contributions to Capital
• Foreign Operations

Chapter 2 Elections and Consents

• Manner and Time of Election
• Consents
• Withdrawal and Amendment
• Reelection
• Private Letter Rulings

Chapter 3 Taxable-Year Rules

• Taxable-Year Options
• Taxable-Year Election Mechanics
• Maintenance and Termination of the Section 444 Election

Chapter 4 Terminations and Revocations

• Basic Considerations
• Terminations
• Revocations
• Accounting for a Termination or Revocation
• Post-Termination Estimated Tax

Chapter 5 Reorganizations of S Corporations

• Basic Considerations
• Mergers and Consolidations
• Divisions, Acquisitions, and Sales
• Other Transactions

Chapter 6 Protecting the S Corporation Election; Invalid Elections

• Threats to the Election
• Protective Measures
• Invalid Elections

Chapter 7 Passive Investment Income

• Basic Considerations
• Gross Receipts
• Income Characterization
• Corporate Planning

Chapter 8 S Corporations' Taxable Income and Losses; Taxation of the S Corporation

• Fundamental Principles
• Tax on Excess Passive Investment Income
• Long-Term Capital Gains—Historical Perspective
• Built-in Gains
• Investment Tax Credit Recapture
• Last-In, First-Out (LIFO) Recapture
• Estimated Tax Payments

Chapter 9 Taxation of S Corporation Shareholders—Basic Pass-Through and Allocation Principles

• Pass-Through of Income, Losses, and Other Items
• Changes in Ownership
• Other Concerns

Chapter 10 Limitations on Shareholder Losses and Deductions

• Basis Limitations
• Interrelationship of Subchapter S and Code Section 1244
• At-Risk Rules
• Passive Activity Loss (PAL) Rules—Overview
• PAL Rules—Definition of Activity
• PAL Rules—Material Participation
• PAL Rules—Disallowed Losses and Credits
• PAL Rules—Rental Activities
• PAL Rules—Dispositions of Property or Interests in Property
• PAL Rules—Effective Dates and Transitional Rules

Chapter 11 Shareholders' Basis in S Corporation Stock and Loans

• Determining Basis
• Structuring Loans to Increase Basis
• Contributions to Capital—A Planning Tool

Chapter 12 S Corporation Distributions to Shareholders

• Fundamental Concepts
• Corporations Without E&P
• Corporations with E&P
• Post-Termination Distribution
• Unintended Dividends

Chapter 13 Compensation; Fringe and Retirement Benefits

• Compensation
• Fringe Benefits
• Retirement Plans
• Life Insurance

Chapter 14 Tax Administration of S Corporations

• Returns
• S Corporation Audits Generally
• Subchapter S Items
• Statute of Limitations and Other Matters
• Tax Return Issues

Chapter 15 Estate Planning and Administration

• Pre-Death Considerations
• Post-Death Considerations

Chapter 16 State Taxation

Chapter 17 Choice of Entity

• Forms of Entities and Definitions
• Taxation of Different Entities
• Distinguishing Characteristics
• Choosing the Form to Use
• Switching Forms of Entity

Chapter 18 2017 Tax Reform

• Summary of Changes
• The (20%) Passthrough Business Income Deduction
• Deemed Repatriation
• Qualified Beneficiary ESBTs
• Global Intangible Low-Taxed Income
• Limitation on Deduction of Business Interest
• S Corporation Conversion to C Corporation
• Bonus Depreciation (For Both New and Used Property)
• Availability of Cash Method Accounting
• Reduced Income Tax Rates
• Carried Interest
• Significant Developments Regarding Tax Reform

Appendix A: Questions and Answers about Reporting Related to Section 965 on 2017 Tax Returns

Appendix B: Publication 5292—How to Calculate Section 965 Amounts and Elections Available to Taxpayers For use in Preparing 2017 Returns

Appendix C: H.R. 1-10: Part II—Deduction for Qualified Business Income of Pass-Through Entities

Tables            

• Internal Revenue Code Sections
• Treasury Regulations Sections
• Administrative Announcements
• Cases

Glossary 

Index