Tax Planning for S Corporations

Free CPA TCP (Tax Compliance & Planning) lesson in Entity Tax Planning. 19 min read, ~2,803 words.

Built-in gains tax applies at 21% when a C-to-S conversion corporation sells appreciated assets within the five-year recognition period, taxing the lesser of recognized gain or net unrealized built-in gain at conversion. S election terminates upon exceeding 100 shareholders, issuing a second class of stock, or admitting an ineligible shareholder...