US Income
S Corporations: Operations (731 - 2nd)
Portfolio Description
Tax Management Portfolio, S Corporations: Operations, No. 731-2nd, reviews the special tax status of S corporations. While S corporations generally avoid federal income tax at the corporate level, S corporation shareholders are taxed pro rata on the corporation's income, which is passed through to them, whether or not distributed. The Portfolio also discusses S corporation operations.
The Portfolio examines the limited circumstances in which the S corporation is taxed, discusses the mechanics of the flow-through of income and loss items, analyzes the taxation of shareholders and distributions, and explains the calculation of shareholder basis in stock and indebtedness. Special rules are also examined, including the passive loss limitations and at-risk rules, the built-in gain rules, and allocation of interest expense. Among other areas, the use of S corporations in an international context is explored.
This Portfolio provides the practitioner with analysis of the taxation of S corporations and their shareholders. In addition, the Portfolio explains the relationship of the S corporation provisions with other areas of the tax laws, and illustrates the advantages and difficulties of a corporation operating as an S corporation.
For additional discussion of S Corporations, see 730 T.M., S Corporations: Formation and Termination.
This Portfolio may be cited as Starr and Sobol, 731-2nd T.M., S Corporations: Operations.
Samuel P. Starr, B.S., Pennsylvania State University; J.D., University of Virginia; LL. M. in Taxation, Georgetown University Law Center; former Chair, AICPA S Corporation Committee; former Co-chair, ABA Tax Section Task Force on Taxable and Tax-Free Acquisitions Involving S Corporations; Adjunct Professor, Georgetown University Law Center; Departmental Editor, Journal of Taxation; lecturer at various tax institutes.
Horacio E. Sobol, B.B.A. University of Michigan , M.Acc. University of Michigan; Member AICPA; contributor to various tax journals and lecturer at various tax seminars.
