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Intermediate S Corps: S Corporation Ownership Change

 

 

Course Year: 2013
Course Level: Intermediate
Prerequisite: NATP's Preparing S Corporation Returns course of basic knowledge of Form 1120S preparation
Advance Preparation: None
Delivery Method: Self-Study

Note: This course is also included in the Intermediate S Corporations course .

CPE Credits Designation Field of Study
IRS * 1 EA Federal Tax Law Topic
NASBA 0 CPA N/A
CTEC 1 CRTP Federal Tax Law Topic
CFP Board 0 CFP® N/A

 

* NATP will report CPE credits to the IRS for all PTIN holders. CPE is currently not mandatory for RTRPs or RTRP candidates and any option to register or participate in this program is strictly voluntary.

 

Fees: $30 for Members and $40 for Nonmembers

Summary 

Clients choose to transfer ownership of S corporation for a number of reasons. Perhaps they want to keep the stock out of their estate. There may be a conflict and the majority of shareholders kick a shareholder out of the business. Maybe the business is very successful, and a new investor is paying a great price to buy into the business. Whether your client transfers a stock via gift, sale or inheritance, you need to know how to report the transfer and allocate items of income, expense and credit in the transition year. Be prepared when your client informs you there has been a change in ownership in their S corporation.

Objectives
Upon completion of this course, the tax professional will be able to:

  • Explain the taxation of an S corporation stock sale. 
  • Determine tax consequences and reporting requirements for stock redemption.
  • Explain how income and losses are allocated when there is an ownership change.
  • Properly report an S corporation’s activity in the year of a shareholder’s death or retirement.
  • Report shareholders’ income using the specific accounting election.
  • Identify an inadvertent termination of S election and explain how to fix it.

For more information regarding refund, complaint and/or program cancellation policies, please contact our Member Services Department at 800.558.3402, ext. 3.

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PO Box 8002, Appleton, WI 54912-8002 Phone: 800.558.3402 Fax: 800.747.0001

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