BarbriSFCourseDetails
  • videocam On-Demand
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

Tax Complexities in the Sales and Purchases of S Corps: Asset vs. Stock Sales, Installment Sales, Critical Elections

$197.00

This course is $0 with these passes:

CPE
ALL
  1. keyboard_arrow_leftBack
BarbriPdBannerMessage

Description

Purchasers generally prefer buying a business' assets. This allows the acquirer to depreciate the newly acquired assets at fair market value and often write off a significant portion of the purchase price using bonus depreciation or Section 179 deductions. Sellers, on the other hand, prefer selling their stock. These gains often qualify for capital gains rates and, for eligible S corporations, may qualify for installment sale treatment. Even sales that are legally treated as stock sales could be treated as asset sales for tax purposes if an election under 338(g) or 338(h)(10) is properly made.

For S corporations that were previously C corporations, sellers must consider the tax effect of built-in gains. Even though S corporations are used to avoid two layers of tax, distributing appreciated assets and assets that have depreciated have significant tax consequences. Tax practitioners working with Subchapter S corporations need to understand the options available to shareholders purchasing and disposing of these flow-through entities.

Listen as our panel of flow-through entity experts examines specific scenarios regarding purchases and sales of S corporations and provides explanations of the tax consequences of each.

Presented By

Robert W. Jamison
Professor Emeritus of Accounting
Indiana University

Mr. Jamison is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His principal area of specialization is S Corporations. He is the sole author of S Corporation Taxation, and co-author of Multistate Tax Guide to Pass-Through Entities, both of which are published annually by CCH, a Wolters Kluwer business. He is a regular contributor to Land Grant University Tax Education Foundation, Inc. National Income Tax Workbook and has contributed to Federal Tax Workshop. He presents advanced and update S Corporation seminars for various states' CPA societies and to other professional organizations. He is a member of the AICPA S Corporation Technical Resource Panel. He consults on S corporation and other business entity problems and has secured letter rulings from the IRS.  

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Kevin J. Walsh
Director/Vice-President
Walsh, Kelliher & Sharp, CPAs, APC

Mr. Walsh special interest is in advising the owners of closely-held businesses. This interest has led to experience and expertise in assisting closely-held business owners at every stage in the lifecycle of a business—from formation, strategic planning, expansion through acquisitions and mergers, as well as succession and transition planning, including business sales, redemptions and liquidations.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
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).

Date + Time

  • event

    Wednesday, March 29, 2023

  • schedule

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

  1. S corporations
    1. Asset purchases and sales
    2. Stock purchases and sales
    3. Installment sales
    4. Built-in gains
    5. Elections
      1. Section 338(g) and 338(h)(10)
      2. Section 336(e)
    6. The Type F reorganization
      1. Converting S corporation to QSub
      2. Converting QSub to SMLLC

The panel will cover these and other critical issues:

  • Avoiding built-in gains tax on sales
  • When an election under 338(h)(10) would result in significant tax savings
  • Which S corporation sales are eligible for installment sale treatment
  • How shareholders are taxed on dispositions

Learning Objectives

After completing this course, you will be able to:

  • Identify related party issues with installment sales of S corporations
  • Determine when an S corporation's sale is eligible for installment sale treatment
  • Decide whether purchasing assets or stock would be most beneficial to the purchaser
  • Ascertain situations where making an election under 338(h)(10) would result in substantial tax savings
  • 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 their respective partners and shareholders.

BARBRI 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

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

BARBRI CE webinars-powered by Strafford-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .