Different taxation rules apply to C and S corporations. The tax liability of a C corporation is separate from its owners, and thus a C corp is subject to double tax: The corporation’s profit is taxed when earned and taxed again when distributed to shareholders as dividends. According to the IRS, the corporation does not get a tax deduction when it distributes dividends to shareholders and shareholders cannot deduct any loss of the corporation. This is primarily how a C corp differs from an S corporation; an S corp can avoid double taxation by passing corporate income, losses, deductions and credits to shareholders who then report the flow-through on their personal tax returns, under IRS tax rules.
This session with taxation expert Vicki Mulak EA, CFP®, will explore the various phases of a C corporation’s life – from how it comes into existence to how it is maintained as a state law entity. Vicki will focus on return preparation issues including managing start-up costs, capitalization, shareholder compensation, net income for book and tax, net operating losses and dividends. You will get examples of common scenarios with calculations and completed tax forms.
Understand how a C corporation is formed and capitalized
Learn how to prepare Form 1120 and its accompanying schedules
Gain confidence in calculation of a C corporation dividend
NASBA & IRS Category of Study: Taxes
Who Should Attend
Certified Public Accountants (CPAs)
Enrolled Agents (EAs)
Other tax professionals involved with S corporation tax returns and the tax returns of the S corporation’s shareholders
Vicki is an Enrolled Agent and Certified Financial Planner (CFP) and owner of American Financial and Tax, a tax preparation, planning and representation firm, which was founded in Tustin, California in 1985, when Vicki became both a resident and a business owner.