Course Description: This course is designed to facilitate your understanding of the use of qualified subchapter S subsidiaries. This course will acquaint you with the eligibility criteria for Qsubs, provide you with an understanding of the election procedures required to create a Qsub, and address the tax consequences of making a valid Qsub election. In addition, this course covers the basic rules related to terminations of Qsub status. You will get insights on different types of scenarios, such as situations where a Qsub's separate corporate status is respected for tax purposes. 

Course Level: Intermediate

Course Prerequisites: None

Delivery Method: Self-study

At the end of this course, you will be able to: 

• List the two (2) eligibility requirements of Qsubs; Articulate the effective date options for Qsub elections; 
• Understand the effect of untimely elections; 
• Describe the tax effect on the parent and subsidiary after making a valid Qsub election; 
• Analyze the specific timing issues that may arise with respect to Qsub elections; 
• Understand the timing dilemma involved when acquisition of 100% of subsidiary is subsequent to or concurrent with the Qsub election; 
• Articulate the arguments for two (2) reporting alternatives regarding LIFO recapture when a Qsub is acquired from a consolidated group; 
• Identify the three (3) events that terminate Qsub status; Describe the effect of a termination of Qsub status; 
• Understand the impact of acquisitions and reorganizations on Qsub terminations; 
• Understand the effect of inadvertent terminations; and
• Describe the situations in which the separate corporate status of a Qsub is respected for tax purposes; and identify those situations in which a separate Qsub EIN is needed.

CPE

2.5

CLE

N/A