Chapter 15: Advanced S Corporation Planning

In this section

• Avoiding Inadvertent Terminations, Updating Shareholder Agreements
  Learn how to safeguard your S Corporation status by preventing inadvertent terminations and updating shareholder agreements with robust clauses, ensuring compliance with IRS regulations.
• Built-In Gain Timing & Monitoring AAA vs. E&P for Distributions
  Explore built-in gain recognition periods, the Accumulated Adjustments Account, and Earnings & Profits interplay. Understand multi-year AAA tracking, distribution ordering rules, and strategic planning to minimize tax pitfalls for Advanced S Corporation Planning.
• Owner Compensation, Reasonable Salary & Employment Tax Minimization
  Explore how S corporation owners can set and justify reasonable wages, minimize employment taxes, and mitigate risks of IRS reclassification, with comparative salary and distribution examples across various states.
• Conversions to/from C Corp & Planning for Mergers or Acquisitions
  Explore essential tax considerations, short-year returns, and strategic insights for switching between C and S corporations, with guidance on mergers, acquisitions, and best practices for CPA exam readiness.