The C-Corporation as a Viable Entity: Tax Reform Changes, Section 1202 Stock and S-Corporation Conversions

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, May 21, 2019

Recorded event now available

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Program Materials

This webinar will outline the benefits and drawbacks of being a C-Corporation after tax reform. The panel will explain why, and why not, being a C-Corporation may be the right choice for you or your client.

Description

The top corporate tax rate plummeted from 35% to 21% with tax reform. This, and Section 1202 generously allowing a 100% gain exclusion for qualified stock sales, force practitioners to step-back and take a fresh look at the C-Corporation as a viable entity choice.

Along with the benefits, are several drawbacks to consider. Small businesses that were in the lowest tax bracket suffer a rate increase from 15% to 21%. Additionally, there is double taxation and missing out on 199A. Still, there are ways to circumvent double taxation and many clients can’t take advantage of 199A due to the AGI thresholds.

Even before tax reform deducting fringe benefits was, and remains, a primary reason for choosing to be a C-Corporation. Additionally, choice of entity considerations must take into account state laws and taxes and, an entity that is an S-Corporation would have the additional hurdle of terminating its S-election. All things considered, failure to re-evaluate entity choice could result in a missed opportunity for substantial tax savings.

Listen as the panel explains both the old and new considerations to comfortably decide if the C-Corporation is the best entity choice for you or your client.

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Outline

  1. The effects of tax reform on C corporations
  2. Avoiding double taxation
  3. Section 1202
  4. Deducting fringe benefits
  5. The S to C conversion

Benefits

The panel will review these and other key issues:

  • What are the current tax considerations when structuring a business?
  • How does recent tax reform impact the choice of entity?
  • What are the state tax and legal considerations?
  • What are the mechanics of the S to C conversion?

Faculty

Neiffer, Paul
Paul Neiffer

Principal
CliftonLarsonAllen

Mr. Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services,...  |  Read More

Smalley, Craig
Craig W. Smalley

Co-Founder / CEO
CWSEAPA

Mr. Smalley has been admitted to practice before the Internal Revenue Service as an Enrolled Agent, is a Certified Tax...  |  Read More

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