DESCRIPTION
This module explores the taxation of C corporations, including their advantages and disadvantages and core structural characteristics. Participants examine key tax attributes such as capital gains, net operating losses, dividends received deductions, and charitable contribution limitations through examples and applied exercises. The course also covers dividend treatment, including constructive dividends and reasonable compensation considerations. Additionally, learners are introduced to income tax provisions, as well as the rules governing personal service corporations and estimated tax payments. These concepts are reinforced through group discussions, brainstorming, research activities, and computations based on client fact patterns.
LEARNING OBJECTIVES
- Identify the key advantages and disadvantages of C corporations compared to other entity structures.
- Describe the tax treatment and limitations associated with capital gains, net operating losses, dividends received deduction, and charitable contributions.
- Recognize situations that give rise to constructive dividends and evaluate whether compensation is reasonable.
- Analyze the key components of an income tax provision and perform a portion of an income tax provision calculation.
- Identify the characteristics of personal service corporations (PSCs) and determine applicable estimated tax payment requirements.
