Shareholder Transactions

Rolling over shares upon S corporation’s acquisition

This item discusses nonprorated S corporation rollovers and the unexpected tax consequences.

Illegal tax shelter seller finds no shelter in stock forfeiture provision

S corporation stock was not subject to a substantial risk of forfeiture because the stock forfeiture provision was unlikely to be enforced.

Comparing stock sales and asset sales of S corporations

The issue of a stock sale versus an asset sale raises a number of significant issues to be considered by S shareholders.

Avoiding gain at the S shareholder level when a loan is repaid

When the basis in an S shareholder’s loan to the S corporation has been reduced by passthrough losses, repayment of the loan may be a taxable event.

Economic benefits of life insurance premium payments are not includible in income

Economic benefits from an S corporation’s payment of a premium on a life insurance policy were not includible in the shareholder/employee’s income.

Items and factors to consider in setting reasonable compensation

All companies should maintain supporting documentation for payments.

Reasonable Compensation for S Corporation Shareholder-Employees

Two recent Tax Court opinions focusing on reasonable compensation for S corporation shareholder-employees provide important takeaways for owners and practitioners by addressing common issues surrounding distributions and loan repayments in the context of reasonable compensation.

Eighth Circuit Affirms S Corporation Shareholder’s Compensation Was Not Reasonable

The Eighth Circuit affirmed a lower court's decision that an S corporation shareholder’s $24,000 salary was not reasonable compensation.

S Corporation Shareholder Compensation: How Much Is Enough?

This article looks at recent court decisions regarding S corporation shareholder reasonable compensation that provide helpful guidance on how an adviser can determine what is reasonable compensation.

S Corporation Reasonable Compensation

A recent district court decision highlights the employment tax risks to S corporations that are found to have paid unreasonably low compensation to shareholder-employees while making distributions to the same individuals.

Compensation Issues for Self-Employed S Corp. Owners

This item discusses how reporting a higher wage can actually maximize long-term profits for the owner-employee of an S corporation.

Tax Insider Articles

Tax Clinic

Marrying ESG initiatives to business tax planning

Early access to wages may require new employment tax analyses

Determining gross receipts under Sec. 165(g)(3)

Recent changes to the Sec. 179D energy-efficient commercial buildings deduction

IRS provides guidance on perfecting S elections and QSub elections

DEDUCTIONS

Business meal deductions after the TCJA

This article discusses the history of the deduction of business meal expenses and the new rules under the TCJA and the regulations and provides a framework for documenting and substantiating the deduction.

TAX RELIEF

Quirks spurred by COVID-19 tax relief

This article discusses some procedural and administrative quirks that have emerged with the new tax legislative, regulatory, and procedural guidance related to COVID-19.

Magazine