Corporate Tax Planning Using Stock Redemptions

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

This course is 4.00 credits
Field of Study
Tax
Course Level
Overview
Vendor
California Society of CPAs

Registration Fees

MSCPA-AICPA Member
$120.00
MSCPA Member
$120.00
AICPA Member
$188.00
Non-Member
$188.00
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Friday, Jan 5, 2018
3:30pm – 7:00pm

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The use of stock redemptions to change the ownership of a corporation is common to buy out existing owners, shift ownership to key employees and shift ownership to the younger generation of a family-owned corporation. Reviews relevant federal income tax law and planning strategies to minimize tax cost; focus on how redemptions of the stock of an S corp produce unique and potentially desirable tax results; and describe the complex rules that apply to sales of stock to related corporations which can be treated as redemption (IRC 304). Also, receive an explanation—and cover illustrations—of the consequences of redemption for the redeeming corporation.

Materials are provided as an ebook.

The use of stock redemptions to change the ownership of a corporation is common to buy out existing owners, shift ownership to key employees and shift ownership to the younger generation of a family-owned corporation. Reviews relevant federal income tax law and planning strategies to minimize tax cost; focus on how redemptions of the stock of an S corp produce unique and potentially desirable tax results; and describe the complex rules that apply to sales of stock to related corporations which can be treated as redemption (IRC 304). Also, receive an explanation—and cover illustrations—of the consequences of redemption for the redeeming corporation.

Materials are provided as an ebook.

Designed For

CPAs and attorneys with at least two years of experience advising owners of privately held businesses; financial management and owners of privately held corporate businesses; IRS and FTB employees.

Course Objectives

  • Identify tax planning opportunities related to redemption of stock of corporation.
  • Determine tax law related to shareholder tax consequences of stock redemptions.
  • Recognize and illustrate application of special rules for redemptions of an S corp stock.
  • Determine how to use redemptions to buy out a shareholder or shareholder group.
  • Recognize tax law related to using stock redemptions to fund the payment of estate tax.
  • Identify and illustrate the tax consequences of the redeeming corporation.

Major Subjects

  • Substantially disproportionate redemptions.
  • Redemptions: terminating the shareholder's interest in the corporation; not essentially equivalent to a dividend; to pay estate tax; of the stock of an S corp; to buy out existing owner or owner group; to shift ownership to key employees or younger family members in a family owned corporation.
  • Partial liquidation.
  • Constructive ownership and redemptions.
  • Sales of stock to a related corporation treated as a redemption (IRC 304).

Prerequisites

Basic understanding the federal incom

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