Self-Study
19
Overview
Taxes
There are no prerequisites.

Course Description

Corporate Tax Planning: Real World Tools and Strategies covers the practical aspects of using the closely-held corporation to maximize after-tax return on business operations. In this course, you'll explore recent developments that give corporations a competitive edge over other entities and examine timely information regarding often-missed fringe benefits, retirement planning opportunities, corporate business deductions, income splitting possibilities, and little-known estate planning techniques. Step-by-step tax procedures provide you with the necessary knowledge to form, operate, and ultimately dispose of a closely-held corporation. This course provides the tax practitioner and financial professional with valuable tools and strategies for corporate tax planning.



Instructor

Danny Santucci, JD

Danny Santucci, BA, JD, is a prolific author of tax and financial books and articles. His legal career started with the business and litigation firm of Edwards, Edwards, and Ashton. Later he joined the Century City entertainment firm of Bushkin, Gaims, Gaines, and Jonas working for many well-known celebrities. In 1980, Danny established the law firm of Santucci, Potter, and Leanders in Irvine, California. With increasing lecture and writing commitments, Danny went into sole practice in 1995. His practice emphasizes business taxation, real estate law, and estate planning. Speaking to more than 100 groups nationally each year, he is known for spicing up his extensive expertise with an incredible sense of humor.



Course Specifics

Taxes
Mar 15, 2017
There are no prerequisites.
SS8170268
391
None


Compliance Information

103220
IRS Provider #: OMYXB
IRS Course ID: 0MYXB-T-01122-17-S
IRS Federal Tax Law Credits: 19
CTEC Provider #: 2071
CTEC Course ID: 2071-CE-1076
CTEC Federal Tax Law Credits: 19
Qualifies for CA Fraud: No


Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Recognize the characteristics, tax treatment, and reporting requirements of sole proprietorships, noting advantages and disadvantages, required self-employment taxes, and applicable approaches to reduce the impact of self-employment taxes
  • Note the defining characteristics and tax treatment of partnerships, including applicable advantages and disadvantages as well as the application of the passive loss (§469) and at-risk rules (§465)
  • Identify proper partnership income or loss reporting requirements, noting the requirements for husband and wife partnerships and limited partnerships
  • Identify the tax treatment and reporting requirements of estates, trusts, and unincorporated associations
  • Recognize the defining characteristics of a corporation, a subchapter S corporation, and an ordinary C corporation, noting applicable advantages and disadvantages of each
  • Recognize the characteristics and requirements of a personal service corporation, noting the testing period requirements, activities, and terminology as well as passive loss limitations and alternative minimum tax requirements
  • Cite federal corporate income taxation requirements, noting taxable income, allowable deductions, and tax credits as well as corporate tax rates and the preferences and adjustments that apply to different types of taxpayers with regards to the alternative minimum tax

Chapter 2

  • Identify the basic requirements and tax consequences associated with §351
  • Recall the requirements of §1244 and the small business stock exclusion
  • Note the defining characteristics of start-up and organizational expenses as well as the differences between each
  • Identify elements of corporate tax recognition, noting tax criteria and the dangers of corporate ownership
  • Recognize corporate deductible capital gains and losses, noting asset types, the characterization process, §1231 requirements, and NOL carryback and carryover rules
  • Identify the tax treatment for dividends received from domestic corporations, noting ownership rights, limitations and disallowed dividends as well as the requirements for debt-financed portfolio stock, property dividends, and changes to the holding period
  • Specify the requirements for corporate charitable contributions, collapsible corporations, and personal holding companies, noting methods to avoid §541 status particularly as these methods pertain to personal service contracts
  • Recognize the pitfalls of accumulated earnings, including the imposition of the penalty tax, and note how the tax is computed, potential earnings credit, and what constitutes reasonable accumulations
  • Cite the requirements of various accounting periods and identify the available accounting methods used to determine when and how income and expenses are reported
  • Identify inventory identification and valuation methods as well as corporation tax advantages and the tax consequences of corporate liquidations and distributions

Chapter 3

  • Recognize employee tax withholding, reporting, and labor law requirements, including the applicable uses of Forms 941, W-4, W-2, and W-3
  • Note the factors that determine employee or contractor status
  • Cite the overall limitations, the scope of examination, and factors that determine unreasonable compensation
  • Note the benefits and tax treatment of income splitting
  • Identify the two basic types of buy-sell agreements, noting their distinguishing characteristics, ownership rules, valuation, restrictions, funding, and the impact of choice of entity on the agreement, and §306 issues
  • Recognize the general rules associated with business recapitalizations including the valuation of stock, estate freeze provisions, stock dividends, and their potential uses

Chapter 4

  • Recognize the definition of income under §61 and the associated basic fringe benefit planning that can be used after determining income under §61, noting the types of former nonstatutory and current statutory fringe benefits
  • Identify the requirements for no-additional-cost-services as well as what property or services are excludable from income as qualified employee discounts under §132(c)
  • Cite examples of and exceptions to working condition fringes and de minimis fringes
  • Recognize the general rules and tax treatment associated with §74 employee achievement awards, §79 group term life insurance rules, and §129 dependent care assistance
  • Identify the functions and requirements for §125 cafeteria plans, the exclusions noted in the §119 meals and lodging exclusion, and the mechanics of §105 self-insured medical reimbursement plans as well as the requirements and limits of §127 programs
  • Note employer-provided automobiles valuation methods, what constitutes interest-free and below-market loans, and the requirements and limitations of fringe benefits for moving expenses, retirement, financial planning, tax planning, estate planning, death benefits, fitness, and home office expenses
  • Cite the impact of fringe benefit plans on S corporations as well as the applicable ERISA compliance rules associated with certain fringe benefits such as welfare plans

Chapter 5

  • Define the key tax terms entertainment, lavish, and extravagant, noting the ordinary and necessary requirements under §162 and §274 as well as statutory exceptions
  • Note the requirements, limitations, and tax treatment for ticket purchases, meals and entertainment, employee business expenses, and entertainment facilities
  • Cite substantiation, recordkeeping, reimbursement, and reporting requirements for business entertainment and travel expenses, noting applicable variations in methods
  • Recognize the special rules and reporting requirements for employee expense reimbursement and reporting, nonreimbursed employee expenses, self-employed persons, and employers

Chapter 6

  • Identify common insurance coverage and premiums provided to employees, noting the requirements for each type as well as the corporate purposes behind providing these insurance benefits
  • Note the corporate uses for life insurance including applicable estate and accident uses as well as the eligibility requirements, tax treatment, reporting requirements, and discrimination rules for qualifying group term life insurance under §79
  • Recognize the rules and regulations found in retired lives reserve and split-dollar life insurance, noting their mechanics, taxation regulation, and advantages and disadvantages
  • Note the mechanics of employer paid health, medical, and disability income insurance including the impact of medical examination requirements
  • Identify the impact of the disallowance of the interest deduction on purchasers and the insurance industry, noting the §264 interest limitation on policy loans
  • Cite the benefits of corporate key person life insurance, the requirements of COBRA, and what constitutes a Voluntary Employee Benefit Association (VEBA) under §501(c)(9)

Chapter 7

  • Recognize the characteristics and requirements for nonqualified and qualified deferred compensation plans, noting their benefit
  • Recall the current and deferred advantages and disadvantages of corporate plans including fiduciary responsibilities and prohibited transactions
  • Specify the requirements of the three basic forms of qualified pension plans, noting their mechanics and unique attributes
  • Recognize the defining characteristics of defined contribution plans and defined benefit plans, noting similarities and differences
  • Identify types of defined contribution plans as well as self-employed plans, noting their requirements and impact on retirement benefits
  • Recognize the characteristics and requirements of IRAs, SEPs, SIMPLEs, and tax-free Roth IRA distributions, noting strategies to maximize plan benefits

Chapter 8

  • Recognize the purpose of postponing income with a nonqualified deferred compensation plan, noting nonqualified plan advantages, economic benefits, ways to design the plans and the IRS's position on such arrangements as well as the impact of constructive receipt
  • Identify the taxability of deferred compensation set forth in R.R. 60-31
  • Cite the requirements for unfunded and funded plans, noting the use of company assets or bookkeeping accounts to avoid employee taxation
  • Note the setup requirements for a segregated asset plan where the account is not subject to the claims of the employer's creditors and still avoids employee taxation
  • Specify the tax consequences of establishing a nonqualified plan

Chapter 9

  • Recognize the characteristics and requirements for S corporations, noting applicable advantages and disadvantages
  • Cite the eligibility requirements and variables that impact whether a business can choose S corporation status
  • Note ways that an S corporation may be terminated as well as any related procedures that need to be performed
  • Recognize the taxation and reporting requirements as well as available fringe benefits of S corporations, noting similarities or differences with other choices of entity

Chapter 10

  • Identify the various organization, start-up, and syndication costs associated with starting a new business, noting how these costs are incurred and treated for tax purposes
  • Cite the advantages of purchasing an existing business over starting a new business, noting ways of finding business for sale as well as the tax considerations for such an acquisition
  • Identify the various types of reorganizations under §368(a)(1), noting the characteristics, benefits, and considerations for each type
  • Identify the factors that determine the corporate tax attributes of an acquired corporation that carry over to the acquiring or successor corporation


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