S Corporation Income Taxation

Topics

September 15, 2020

Final regs. govern eligible terminated S corporation rules

The IRS finalized proposed regulations on eligible terminated S corporations, a new provision enacted under the Tax Cuts and Jobs Act that provided favorable treatment for corporations that wished to terminate their S elections.

September 2, 2020

Regulations coming on S corporations with accumulated E&P and GILTI

The IRS announced that it will issue regulations to allow S corporations with accumulated earnings and profits to elect to have global intangible low-taxed income inclusions increase the S corporation’s accumulated adjustments account.

February 19, 2020

AICPA requests clarity on Sec. 465 reporting relief

The AICPA has asked Treasury and the IRS to clarify that reporting relief on certain reporting under Sec. 465 will also apply to S corporations.

February 1, 2020

Start or review an accountable plan

Employees’ business expense reimbursements are excluded from gross income.

December 1, 2019

Business tax quick guide — tax year 2019

Download and print this quick guide for use during tax season, and look for our quick guide for individual taxpayers in the January 2020 issue.

October 1, 2019

Relief for ESBT election failure saves S corporation’s status

An IRS letter ruling allowed an otherwise qualified corporation to continue to be treated as an S corporation for federal income tax purposes despite its inadvertent termination of its S corporation status.

September 26, 2019

AICPA seeks guidance on adjustments for conversions from S corp. to C corp.

In comments submitted to the IRS, the AICPA requested expeditious guidance concerning adjustments attributable to conversions from an S corporation to a C corporation.

July 1, 2019

S corp. expenses not personally deductible by shareholder as a sole proprietor

A district court denies a taxpayer’s refund claim.

July 1, 2019

W-2 wages and Sec. 199A

Finding the “sweet spot” to maximize the qualified business income deduction may involve adjusting a business’s workforce.

May 10, 2019

Distribution by former S corporation is part dividend

The IRS ruled that a distribution to the sole shareholder of a C corporation was partly a recovery of the former S corporation’s accumulated adjustments account (AAA) and a taxable dividend for the remaining distribution.

January 17, 2019

What CPAs need to know about Sec. 199A guidance and SSTBs

One of the areas that accountants are most interested in regarding tax reform is Sec. 199A guidance — and, more specifically, how the deduction for qualified business income relates to a specified service trade or business. Tony Nitti, CPA, addresses some popular questions on that topic.

November 1, 2018

The new QBI deduction is finally clearer

Proposed regulations issued on Sec. 199A bring welcome guidance.

November 1, 2018

Income omission triggers 6-year limitation period

Reporting of some S corporation gross receipts is not adequate disclosure of all receipts, the Tax Court holds.

September 1, 2018

S corporation shareholder may not revoke tax election

The Tax Court declines to create a precedent and allow an individual S corporation shareholder to unilaterally and retroactively revoke the corporation’s election.

July 1, 2018

Levy on husband-and-wife LLC is upheld

Taxpayers’ claim they were a single-member limited liability company is belied by partnership returns, the Tax Court concludes.

May 1, 2018

Carry your losses (further) forward

New rules limit utilization of net operating losses.

May 1, 2018

Mechanics of the new Sec. 199A deduction for qualified business income

This article reviews several scenarios in which certain individuals could take advantage of a new Internal Revenue Code provision to significantly lower their taxes.

December 1, 2017

S corp. basis and why it’s important

Loans must qualify as “bona fide debt” to create basis for deducting passthrough losses.

August 1, 2017

Deductions disallowed for operator of Larry Bird’s former house as a B&B

The French Lick, Ind., property was used for personal purposes more than 14 days per year, the Tax Court holds.

July 1, 2017

Loan guarantees do not increase S corporation shareholder’s basis

The guarantees lacked any economic outlay, the Tax Court holds.

FROM THIS MONTH'S ISSUE

Flip out with the latest Tech Q&A

The September Technology Q&A column shows how to create dynamic to-do lists with Excel's checkboxes and also how to set up multifactor authentication texts that don't rely on phones. Flip through both items and view a video walkthrough in our digital format.