Changes in S Corporation Stock Ownership Self-Study

Summary

Stock ownership in an S corporation changes throughout the year upon a disposition of the shareholder’s stock. This generally occurs when shareholders sell or gift their stock to someone else; however, it also happens when a shareholder dies or the S corporation redeems its stock from one of the shareholders. It’s important tax professionals understand how to report a change in stock ownership, allocate pass-through items in the year of change, and determine the potential tax effects to the S corporation and its shareholders. This course analyzes the tax consequences when stock ownership in an S corporation changes.

Objectives

Upon completion of this course, you will be able to:

• Explain how shareholders are taxed on the sale of their S corporation stock
• Summarize the tax consequences of an S corporation stock redemption
• Explain how S corporations allocate pass-through items when stock ownership changes
• Recognize when a change in stock ownership inadvertently terminates the S election

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.