S Corporation Income Taxation

Topics

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.

May 1, 2018

Carry your losses (further) forward

New rules limit utilization of net operating losses.

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.

June 27, 2017

Boston Bruins can deduct full cost of meals for team’s away games

The Tax Court held that the owners of the Boston Bruins could deduct the full cost of their team’s pregame meals for away games as a de minimis fringe benefit.

March 1, 2017

S corporation’s sole owner had unreported income but not constructive dividend

The Tax Court cites a lack of earnings and profits.

January 1, 2017

LLC’s sole member is held liable for employment taxes

An LLC is treated by default as a disregarded entity, the Tax Court holds.

December 1, 2016

Forfeited deposits are ordinary income

Income from forfeited deposits of terminated contracts related to Sec. 1231 property is not eligible for capital gain treatment under Sec. 1234A.

December 1, 2016

S corporation’s payments on its owner’s behalf are held not to be wages

Despite a lack of promissory notes, interest, or repayment terms, the Tax Court treats an owner’s advances to his business as loans and its payment of his personal expenses as repayments.

June 1, 2015

Helping S corporations avoid unreasonable compensation audits

The IRS aggressively audits S corporations to make sure they do not disguise compensation as distributions to shareholders. Here’s what tax preparers need to know to avoid red flags in S corporation returns.

April 13, 2015

Sec. 4980D excise tax relief is available for certain small employers

IRS gives limited transition relief for employer payment plans and 2% S corporation shareholder arrangements.

February 2, 2015

FASB proposes two changes to simplify accounting for income taxes

FASB proposed two standards changes that are designed to reduce complexity in accounting for income taxes.

FROM THIS MONTH'S ISSUE

Cannabis dispensary denied ERC

The Court of Federal Claims held that Sec. 280E, which prohibits deductions and credits for businesses trafficking in controlled substances, applies to the employee retention credit (ERC), including its refundable portion, and denied a cannabis business’s claim for a refundable ERC.