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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 43 ||| Word Count: 19,706 ||| Review Questions: 20 ||| Final Exam Questions: 18 |
| CPE Credits : | 3.5 |
| IRS Credits : | 3 |
| Price : | $31.45 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 241 |
| Description : | This mini-course describes and compares sole proprietorships, partnerships, limited liability companies, C corporations, and S corporations. It examines their advantages and disadvantages, permitting the participant to properly select the right business entity for their tax and liability needs. |
| Usage Rank : | 15417 |
| Release : | 2024 |
| Version : | 1.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
What Are the Basics of Business Development?
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 19-Mar-2024 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 241 |
| Keywords : | Taxes, Choosing, Right, Business, Entity, Getting, Cash, Out, It, Mini, Course, cpe, cpa, online course |
| Learning Objectives : |
As a result of studying the assigned materials, you should be able to meet the objectives listed below. ASSIGNMENT
* Taxes for self-employed individuals * Definition of partnership * Partnership tax return & year taxable * Contributed property, assets & services * Sales & exchanges of partnership interests * Limited liability companies * C corporations & PSC corporations * Inventories * S corporations
2. Recognize the tax attributes of sole proprietorships, partnerships, LLCs, S corporations, and C corporations and how each entity can be used to enhance tax and financial purposes and objectives. 3. Specify the unique (e.g., self-employment) and general taxes applicable to particular entities and the tax forms that may be required. 4. Identify the basic deductions that are permissible for each entity type and the conditions under which they are allowed. 5. Determine the tax years, accounting methods, and valuation methods that each entity type may use, and how the entities can be terminated. 6. Specify for different entity types the basis and the tax effect of sales, exchanges, transfers, contributions, and distributions. |
| Course Contents : | Chapter 1 - Choosing the Right Business Entity and Getting Cash Out of It The Great Business Entity Tax Divide Pass-through Entities - 20% Deduction Limitations Deduction Amount Qualified Trade Or Business Corporations - 21% Rate Sole Proprietorship Introduction Advantages Disadvantages Formation Withdrawals Schedule C Not-For-Profit Activities - §183 Deduction & Loss Limit Profit Presumption - 3/5 Self-Employment Tax - SECA Estimated Tax Sale of a Business Classification of Assets Income Splitting Partnerships Definition of Partnership Section 761(a) Co-tenancies Partnership Agreement Modifications Partner’s Share of Tax Items Limited Partners Family Partnerships - §704(e) Advantages Disadvantages Partners Taxed as Individuals Individual Returns & Schedules K-1 Separately Treated Items Character of Items & Limitations Deduction of Losses Outside Basis Limitation - §704(d) Loss Ultimately Deductible Effect of Losses on Outside Basis - §705 Partnership Tax Return Filing Requirements Due Date of Return Failure to File Failure to Furnish Copies to Partners Special Allocations - §704(b) Economic Effect “Substantial Effect” Year Taxable - §706(a) Limitation on Choice of Taxable Year Closing of Partnership Year Events That Terminate Partnership - §708(b) Discontinuance of Business Winding Up Sale of 50% or More Interest - Repealed Transactions between Partner & Partnership Treating Partner as Stranger - §707(a) Guaranteed Payments - §707(c) Certain Losses Disallowed - §707(b) Two Partnerships Sales at Gain Contributions of Property - §721 Contribution vs. Sale or Exchange Disguised Sale - §707(a) Property Distribution to Contributing Partner - §737 Contributed Property Distribution to Another Partner - §704(c) Inside Basis of Contributed Assets - §723 Allocation of Precontribution Gain or Loss - §704(c) Character of Subsequent Gain Taint On Contribution- §724 Character of Subsequent Loss - §724(c) Contribution of Services Basis of Partner’s Interest - Outside Basis Original Basis - §722 Adjustments to Basis - §705(a) Effect of Liabilities - §752 Sales & Exchanges of Partnership Interests Hot Assets - §751 Liabilities of Partnership - §752 Basis of Partnership Assets after Transfer of Interest General Rule - §743(a) Special Basis Adjustment - §§743, 754 Partnership Distributions - §731 Exceptions to General Rule Partnership Liquidations Types of Liquidating Distributions Liquidating Distributions of Money - §736 Section 736(a) Payments Section 736(b) Payments Limited Liability Companies Introduction LLC Benefits Advantages of LLCs over C Corporation Double Tax Basis Adjustment Special Allocations Contributions Liquidation Unreasonable Compensation Non-Tax Benefits Advantages of LLCs over S Corporations Advantages of LLCs over Limited Partnerships Outside Basis & Debt Share Advantage Substantial Economic Effect Rules - §704(b) Discharge of Indebtedness Income Advantages of LLCs over General Partnerships Disadvantages Corporations Corporation Defined Corporate Characteristics Check-the-Box Regulations C Corporations Advantages Disadvantages PSC Corporations - §441, §448, §469 Testing Period - §441 Personal Services - §441 Principal Activity & Substantial Performance - §441 Employee Owner - §441 Passive Loss Limitations - §469(a)(2) Qualified Personal Service Corporation - §448 Incorporation - §351 Basic Requirements Corporate Nonrecognition Control Property Basis - §362 Stock Basis Section 1244 Stock Maximum Ordinary Loss Original Issuance Distributed Stock General Requirements Start-Up Expenses - §195 Covered Expenses Amortization Organizational Expenses - §248 Definition Stock Issuance & Syndication Expenses Amortization Corporate Income Tax Rates Tax Tables Current Rate - 21% Tax Return & Filing Corporate Alternative Minimum Tax Reinstatement of AMT for Larger Corporations - §55(b)(2) Capital Gains & Losses - §1212 Net Capital Loss Carryovers Dividends Received Deduction - §243 Dividends from Domestic Corporations 65% Exception Charitable Contributions - §170 Limitation Personal Holding Companies - §541 Penalty Tax Accumulated Earnings Tax Trap Computation Accumulated Earnings Credit Accounting Periods & Methods Accounting Periods Accounting Methods Methods Available Inventories - §446 Identification Methods Specific Identification Method FIFO Method LIFO Method Valuation Methods Cost Method Uniform Capitalization Rules - §263A Lower of Cost or Market Method Corporate Liquidations & Distributions S Corporations Introduction Advantages Disadvantages Becoming an S Corporation S Corporation Status Number of Shareholders One Class of Stock Domestic Corporation Election Requirement Making the Election Form 2553 S Corporation Termination Ceasing to Qualify Passive Income - §1362 Taxation of S Corporations Built-In Gain - §1374 Taxable Year Fringe Benefits Glossary |
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