Objectives
- Form a S corporation and calculate the entity’s initial inside basis in the assets and shareholder’s stock basis
- Understand the operational issues during the growth and maturity of a S corporation and how the schedule K items get allocated to the shareholders on their individual Schedule K-1 effecting stock and debt basis
- Prepare a Schedule M-2 and determine how distributions are treated to the shareholders
- Comprehend the tax ramifications of liquidating a S corporation and the sale versus redemption of a shareholder’s stock
Prerequisite
Background in S corporation and individual income tax law