This course reviews the taxation of S Corporations and their shareholders. The course examines the passthrough system and its effects on both shareholders and on the corporation. It provides essential information surrounding the election of S Corporation status and taxation rules under Subchapter S of the Internal Revenue Code. It outlines the rules concerning the tax computations for income, loss, deductions, or credit, for S corporations and their shareholders.

The American Jobs Creation Act of 2004 (AJCA 2004) made a number of changes to the S corporation rules, which are discussed throughout the course.

Topics include:

• General tax rules imposed on corporations electing S status and tax rules imposed on operating S corporations
• Limitations on the fringe benefits that may be offered to shareholder-employees
• Direct taxation of S corporations in a few limited situations, such as conversion from C to S status