DESCRIPTION
This module covers S corporation tax issues. There is a heavy correlation to the effects of owner compensation and distributions for each entity. There are several exercises throughout the module that provide practical application opportunities.
LEARNING OBJECTIVES
- Identify reasons why entities choose S corporation status.
- Describe how an S corporation pays its owners.
- Describe factors influencing eligibility to be an S corporation.
- Identify S corporation characteristics including S elections.
- Describe reasonable compensation requirements for S corporations.
- Identify tax law for fringe benefits for more than 2% of owners.
- Identify the purpose of Schedule M-2 and the retained earnings reconciliation.
