Draws By an Owner Employee from a Closely Held Business

The start date for this course has passed. Registration is no longer available.

This course is 2.00 credits
Field of Study
Tax
Course Level
Update
Vendor
BPN, Inc ACPEN

Registration Fees

MSCPA-AICPA Member
$79.00
MSCPA Member
$79.00
AICPA Member
$109.00
Non-Member
$109.00
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Tuesday, Aug 27, 2019
12:00pm – 2:00pm

IRS loves to attack payments from closely held businesses to owners, particularly owner employees. The story is as old as the hills, but lately it plays out with some unexpected twists and turns. Lessons learned from recent developments provide meaningful guidance as to how to structure to achieve optimal tax treatment of such draws. This course was updated on April 3rd, 2019 **Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to leighanne.conroy@acpen.com.
IRS loves to attack payments from closely held businesses to owners, particularly owner employees. The story is as old as the hills, but lately it plays out with some unexpected twists and turns. Lessons learned from recent developments provide meaningful guidance as to how to structure to achieve optimal tax treatment of such draws. This course was updated on April 3rd, 2019 **Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to leighanne.conroy@acpen.com.

Designed For

Any person desiring to properly structure the draw of cash or property from a closely held business to its owner (typically owner employee) to achieve intended tax results

Course Objectives

To empower the participant to understand each context within which draws by owner employees from their closely held businesses are taxed To master how to structure such payments for best tax results

Major Subjects

How the rules for owner draws from C corps, S corps, partnerships, LLCs and sole proprietorships differ by context Trends in reasonable compensation for C corps, S corps and partnerships IRS' recent attack on "reasonable rents" (how do you figure a "reasonable rent" anyway?) Structuring a reasonably low salary from an S corp Structuring a reasonably low guaranteed payment from a partnership (can it even be done?) Recent case instructing how a loan to an S corp can be repaid (by the S corp) (even when the repayment pays the shareholder's personal expenses) How other taxpayers fail big on the loan repayment argument IRS' recent constructive dividend frenzy in Tax Court How C corps may not be as bad as you think How S corps are faring better in the courts than partnerships currently (in avoiding employment tax) and what to do about it Proper structure of loans and "capital to loan" ratios to keep it clean

Prerequisites

None

The start date for this course has passed. Registration is no longer available.