S Corporations Part 2: Determining Reasonable Compensation
Author: Greg White
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
How do you determine reasonable compensation? We'll cover every important case and provide practical methods to calculate how much compensation is reasonable. We'll also cover basis increases that arise from shareholder debt: what works and what doesn't work. Finally, we'll cover what happens when an S corporation is inadvertently terminated – how you can get the train back on the track.
Publication Date: June 2023
Designed For
null
Topics Covered
- Reasonable compensation for shareholder-employees
- The types of debt that provide basis to shareholders
- Fixing technical violations of S corporation's eligibility rules
Learning Objectives
- Identify methods to determine reasonable compensation
- Recognize how to restructure loans to provide basis to a shareholder
- Describe what actions you can take if an S corp has ineligible shareholders or two classes of stock
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
