S Corporation Taxation Guide (2006)

The S corporation is the most popular entity for closely-held businesses, but the rules that regulate S corporations and make it a popular choice are complex, confusing and changing. CCH's popular "S Corporation Taxation Guide" offers an indepth and comprehensive analysis to S corporation taxation and uses extensive examples to illustrate both simple and complex situations. In areas where authorities do not provide clear guidance, the author constructs plausible courses of action, with appropriate analysis. The S Corporation Taxation Guide focuses on the rules of Subchapter S of the Internal Revenue Code and integrates these rules with other portions of the tax law that can have substantial impact on S corporations and their shareholders. At the end of each chapter are pertinent checklists, worksheets and sample election letters to help apply the concepts discussed to the reader's actual work. The 2006 edition of the S Corporation Taxation Guide gives practitioners a complete road map to all of the current rules and strategies including: Thorough analysis of relevant American Jobs Creation Act of 2004 provisions, including unresolved issues and suggested coping strategies, such as: - Treatment of a trust and beneficiary when the trust disposes of stock - Transferability of losses between husband and wife - Liberalization of the Electing Small Business Trust rules Also included in this convenient volume: - Explanation of current IRS philosophies toward shareholder-employee compensation, and why this may be the hot spot in examinations - Revamped coverage of what the S corporation can and cannot do in the fringe benefit area, including HSAs - Creative new techniques for separating ownership from control of S corporations using trusts and disregarded entities, along with some hazards these structures may invite - All significant cases and rulings since the 2005 edition went to press; these range from routine issues, such as basis and hobby loss rules, to the more complex such as LIFO recapture and built-in gains tax.