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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Tuesday, February 4, 2020

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This course will offer tax advisers and professionals an exploration of IRC Section 1202 qualified small business stock (QSBS). The webinar will detail the gain exclusion rules of Section 1202 and will describe the types of business entities that are eligible QSBS companies. The panel will also discuss the tax deferral provisions contained in Section 1045 for rollovers in qualified small business stocks, and review specific cases and examples relative to Section 1202 stock. Finally, the webinar will offer guidance on the reporting requirements and planning opportunities related to QSBS.

Faculty

David Strong
Partner
Wilmer Cutler Pickering Hale and Dorr, LLP

Mr. Strong is a tax partner with extensive experience advising clients on domestic and cross-border mergers and acquisitions, spin-offs and restructurings, partnerships and joint ventures, and private equity and venture capital investments. He also has substantial experience advising clients on the tax aspects of a wide variety of capital markets transactions, including syndicated credit facilities, mezzanine and bridge loans, early-stage venture financings, and initial public equity offerings and convertible debt offerings(including tax-integrated hedges). Mr. Strong is a former adjunct professor and current advisory member to the faculty at The University of Denver Law School’s Graduate Tax Program. He is also a former chair of the Corporate Tax Committee of the Tax Section of the ABA, a fellow of the American College of Tax Counsel, and a frequent speaker on corporate and other tax matters at local, regional, and national seminars and continuing legal education programs.

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Christopher A. Karachale
Senior Counsel
Hanson Bridgett LLP

Mr. Karachale advises individuals and business entities on a broad range of tax planning and tax controversy matters. He has written extensively on QSBS issues. He counsels taxpayers on employee benefits and executive compensation issues, including deferred compensation and Section 409A. He assists clients with international tax compliance, including voluntary disclosures and related planning matters. He represents individuals and an array of business entities in controversy matters before the IRS and California state tax authorities.

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Raymond L. Leung
Managing Partner
Leung Louie Ip & Co., LLP

Mr. Leung has over 25 years of personal and corporate income tax and financial consulting experience with a special emphasis in gift and estate tax. His focus is providing consulting services to many closely-held businesses and their owners as well as high net-worth individuals and their families. He also advises his clients in the areas of compensation, stock options and founders’ stock planning, and taxation of U.S. and foreign investments.

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Description

The Internal Revenue Code provides significant tax benefits for QSBS buyers and owners. Owners of such stock, as defined by Section 1202, can exclude up to 100% of eligible realized gain upon sale of the QSBS after meeting the five-year holding period. For investors funding startup companies, the 1202 exclusion can provide significant tax savings.

In addition to the gain exclusion found in 1202, there are other tax incentives attached to small business stock ownership. Section 1045 allows taxpayers nonrecognition treatment for gain on any sale of QSBS when the proceeds are rolled over into another QSBS. The rollover provision can benefit business owners who want to sell their company and start a new business. By meeting the rules found in 1045, a business owner can defer tax on the gain arising from the sale of the existing business.

Listen as our expert panel details the rules, benefits, reporting mechanics, and planning opportunities of Section 1202 QSBS.

Outline

  1. Qualified small business stock
    1. Entities eligible for QSBS treatment
    2. Section 1202 cap gains exclusion rules
  2. Section 1045 rollover gain deferral rules
  3. Entities eligible for small business treatment
  4. Section 1202 reporting requirements
  5. Planning considerations for QSBS
  6. Case studies and examples

Benefits

The panel will discuss these and other relevant topics:

  • What types of entities qualify--and do not qualify--for preferential treatment under Section 1202?
  • What are the mechanics of the gain exclusion calculations upon the sale of Section 1202 stock?
  • What are the rules and qualifications for the rollover deferral provisions under Section 1045?
  • What is the current state of IRS challenges to this significant tax break?

NASBA Details

 

Learning Objectives

After completing this course, you will be able to:

  • Identify entities eligible for Section 1202 treatment
  • Ascertain if a sale is eligible for Section 1244, ordinary loss treatment
  • Determine the tax advantages of Section 1202
  • Decide whether holding period under Section 1202 is met

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).