Advanced Corporate Income Tax

Course Description

This course presents the aspects of the formation, reorganization, and liquidation of corporations and the impact on shareholders Taxation issues involved in the partnerships, corporations, and S Corporations are examined, as well as estate and gift taxes, basic tax planning, and research.

Topics and Objectives

Understanding the Tax Laws & Research Techniques

• Relate the impact of economic, social, and political factors to the development of tax law
• Conduct online research using multiple tax law sources

Corporation and Business Entity Taxability

• Compare and contrast tax consequences for the various types of business entities (eg, sole proprietorship, partnership, S-Corporations, etc)
• Determine a corporation's taxable income and tax liability
• Determine filing procedures for business tax returns, based on business sizes and IRS requirements

Capital Structure, Earnings & Profit, Dividend Distribution, Redemption, and Liquidations

• Identify how capital structure impacts the tax treatment of a corporation and its shareholders
• Apply IRS Code Section 351 to the transfer of property and liabilities from shareholders to a corporation
• Compute a corporation's earnings and profits
• Distinguish among forms of corporate distributions, including the tax effect on the corporation and its shareholders
• Determine the tax effect of constructive dividends, stock dividends, and stock rights on shareholders
• Determine the tax effect of forms of stock redemption
• Determine the tax effect of different types of corporate liquidations on a corporation and its shareholders
• Identify tax-planning opportunities when using different liquidation methods

Alternative Minimum Tax and Personal Holding Company Tax

• Compute a corporation's alternative minimum tax and accumulative earning tax
• Determine personal holding company tax status
• Calculate personal holding company tax

Rules and Statutes of Corporate Reorganizations

• Compare and contrast types of corporate reorganizations and their tax effects
• Apply the carryover of tax attributes to a corporate reorganization, using a business scenario

Taxability of Partnerships and its Partners

• Determine the tax effects of the formation of a partnership
• Compute partnership taxable income
• Determine a partner's basis in a partnership
• Compare and contrast the tax treatment of liquidating and non-liquidating partnership distributions
• Determine the tax consequences of a partnership interest disposal
• Differentiate between a limited liability company (LLC) and limited liability partnership (LLP)

S Corporations and Forms of Business Entities

• Identify the requirements for electing status as an S Corporation
• Delineate the tax operating rules of an S Corporation
• Assess the tax effect of electing status as an S Corporation on the corporation and its shareholders
• Identify tax aspects of principal legal forms of doing business
• Explain the influence of the single and double taxation on different entities
• Determine the tax effect on the entities and the owners when disposing of the business

Tax Administration and Practice

• Assess the functions of the IRS
• Identify levels of the income tax appeal procedure
• Determine penalties for failure to file returns
• Calculate estimated taxes for types of business entities

Gift and Estate Taxes

• Assess the nature of the Unified Transfer Tax System
• Distinguish transfers that are subject to the gift tax
• Determine the taxability of components of an estate
• Compute estate tax liability