S Corporations Part 2: Determining Reasonable Compensation (Completed)

Date: Monday, June 8, 2020
Instructor: Greg White
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

How do you determine reasonable compensation? We’ll cover every important case and provide practical methods to calculate how much compensation is reasonable. We’ll also cover basis increases that arise from shareholder debt: what works and what doesn’t work. Finally, we’ll cover what happens when an S corporation is inadvertently terminated – how you can get the train back on the track.

Topics Covered

  • Reasonable compensation for shareholder-employees
  • The types of debt that provide basis to shareholders
  • Fixing technical violations of S corporation's eligibility rules

Learning Objectives

  • Identify methods to determine reasonable compensation
  • Recognize how to restructure loans to provide basis to a shareholder
  • Describe what actions you can take if an S corp has ineligible shareholders or two classes of stock


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

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