Changes to the BIG Recognition Period of Sec. 1374(d)(7)
The potential effect of the built-in-gain tax is often a significant consideration during pending acquisitions involving an S corporation.
Allocations of Profits & Losses
Calculating Basis in Debt
Direct shareholder loans to an S corporation can be very important tools for tax planning.
Should S Corporations Get Ordinary Loss Treatment for Losses on Subsidiary Stock?
The question of whether an S corporation should be treated the same as a C corporation when its subsidiary corporation is insolvent has not been definitively answered.
Current Developments in S Corporations
This article discusses major changes and developments that directly affect S corporations and their tax advisers during the period of this update (July 10, 2012–July 9, 2013).
IRS Not Allowed to Reclassify Passive Activity Income
The Tax Court held the IRS could not reclassify the taxpayer’s income from the rental of cellphone towers and the land they were situated on to his wholly owned S corporation as nonpassive income under the self-rental rule.
Current Developments in S Corporations
During the period of this S corporation tax update, some major changes that directly affect S corporations took place. This article also presents tax planning ideas for S corporations and their shareholders.
The S Corporation Built-In Gains Tax: Commonly Encountered Issues
This article examines five issues corporations commonly encounter in complying with the built-in gains tax.
Separately Identifiable Intangible Assets: Tax Opportunities and Traps
Treating self-created customer-based intangibles as assets separate from goodwill can result in more favorable tax treatment for these intangibles. This article examines the rules regarding the separate treatment of self-created customer-based intangibles and the situations in which separate treatment may be beneficial.
Built-In Gains Recognition Period Temporarily Reduced for 2011 Transactions
The Small Business Jobs Act of 2010 includes an additional temporary reduction of the recognition period for built-in gains tax under Sec. 1374.
Planning to Escape the S Corporation Built-in Gains Tax in 2010
The American Recovery and Reinvestment Act of 2009 suspended imposition of the built-in gains (BIG) tax for tax years beginning in 2009 and 2010 for qualifying S corporations.
Sec. 465 Traps for the Unsuspecting S Corporation Shareholder
Without proper planning, the at-risk rules set out in Sec. 465 can limit the amount of deductible S corporation losses.
Current Developments in S Corporations (Part II)
This article covers S corporation operational issues.
