This course examines and explains the practical aspects of using a closely held corporation to maximize after-tax return on business operations. Recent developments giving corporations a competitive edge over other entities are explored and detailed. Practitioners are alerted to often missed fringe benefits, retirement planning opportunities, corporate business deductions, income splitting possibilities, and little-known estate planning techniques. The program covers step-by-step tax procedures to form, operate, and ultimately dispose of a closely held corporation. Distinctions between S and C corporations will be unraveled and guidelines for client direction given.

Chapter 1 – Business Forms & Characteristics
At the start of Chapter 1, participants should identify the following topics for study:
* Sole proprietorships
* Partnerships
* Estates & trusts
* Unincorporated associations
* Corporation defined
* Subchapter S corporations
* Ordinary “C” corporations
* Personal service corporations
* Corporate tax rate
Learning Objectives
After reading Chapter 1, participants will be able to:
1. Specify the advantages and disadvantages of sole proprietorships, including self-employed taxes and payment requirements, and identify the characterization of sole proprietorship assets upon disposition.
2. Recognize the role of the partnership agreement on partnership taxation, particularly the application of the at-risk rules (§465).
3. Identify the reporting requirements of unincorporated associations, determine what constitutes a “corporation,” and specify the characteristics of a personal service corporation.
After studying the materials in Chapter 1, answer exam questions 1 to 12.

Chapter 2 – Corporate Formation & Capitalization
At the start of Chapter 2, participants should identify the following topics for study:
* Incorporation
* Start-up & organizational expenses
* Tax recognition of the corporate entity
* Capital gains & losses
* Dividends received deduction
* Charitable contributions
* Accumulated earnings tax trap
* Accounting periods & methods
* Inventories
* Multiple corporations
Learning Objectives
After reading Chapter 2, participants will be able to:
1. Identify the transfer of money, property, or both by prospective shareholders and the basic requirements associated with §351.
2. Recognize the differences between start-up and organizational expenses, and identify the elements of corporate tax recognition, including capital gains and losses, stating dividends received treatment.
3. Specify the requirements for corporate charitable contributions, and determine how to avoid §541 status, particularly as to personal service contracts.
4. Identify §531 status and determine accounting periods and methods available to corporations.
5. Specify methods for identifying inventory items and identify multiple corporate tax advantages.
After studying the materials in Chapter 2, answer exam questions 13 to 29.

Chapter 3 – Corporate Principals & Employees
At the start of Chapter 3, participants should identify the following topics for study:
* Payroll taxes
* FICA & FUTA
* Employee labor laws
* Employee v. contractor status
* Unreasonable compensation
* Income splitting
* Buy-sell agreements
* Entity & cross-purchase agreements
* Sole shareholder planning
* Recapitalization
Learning Objectives
After reading Chapter 3, participants will be able to:
1. Determine payroll taxes and the uses of W-2, and specify the application of major employee labor laws.
2. Recognize common-law rules used to determine employee status for FICA and federal income tax withholding, specify the dangers of unreasonable compensation, stating how to avoid them, and determine valuable income-splitting devices.
3. Identify buy-sell agreements, distinguishing an entity purchase from a cross-purchase agreement and recognize business recapitalizations and the impact of estate freeze rules.
After studying the materials in Chapter 3, answer exam questions 30 to 39.

Chapter 4 – Basic Fringe Benefits
At the start of Chapter 4, participants should identify the following topics for study:
* Statutory v. nonstatutory benefits
* No-additional-cost services & qualified employee discounts
* Working condition fringes
* Employee achievement awards
* Dependent care assistance
* Cafeteria plans
* Self-insured medical reimbursement plans
* Employer-provided automobile
* Interest-free & below-market loans
* Fringe benefit plans for S corporations
Learning Objectives
After reading Chapter 4, participants will be able to:
1. Identify “income” under §61 and specify the tax differences between nonstatutory and statutory fringe benefits.
2. Determine what constitutes working condition and de minimis fringes, cite the §79 group term life insurance rules, recognize §125 “cafeteria plans” stating how they function, and specify the mechanics of §105 self-insured medical reimbursement plans.
3. Identify employer-provided automobile valuation methods, and specify ERISA compliance requirements.
After studying the materials in Chapter 4, answer the exam questions 40 to 48.

Chapter 5 – Business Entertainment
At the start of Chapter 5, participants should identify the following topics for study:
* Pre- & post-2018 tests for entertainment expenses
* Statutory exceptions
* Pre-2018 ticket purchases
* Percentage reduction for meals
* Entertainment facilities
* Substantiation & record keeping
* Employee expense reimbursement & reporting
* Self-employed persons
* Employers
Learning Objectives
After reading Chapter 5, participants will be able to:
1. Define the disallowed “entertainment” recognizing the importance of the remaining statutory exceptions, specify the application of the percentage reduction rule, and determine an “entertainment facility” stating related deductible costs.
2. Identify substantiation, recordkeeping, reimbursement, and reporting requirements, recognizing variations in methods and specify the special reporting rules for self-employed persons and employers.
After studying the materials in Chapter 5, answer the exam questions 49 to 58.

Chapter 6 – Insurance
At the start of Chapter 6, participants should identify the following topics for study:
* Company paid insurance
* Group term life insurance
* Regulations
* Retired lives reserve
* Split-dollar life insurance
* Medical & dental insurance & disability income insurance
* Interest limitation on policy loans
* Key person life insurance
* COBRA
* VEBAs – §501(c)(9) Trusts
Learning Objectives
After reading Chapter 6, participants will be able to:
1. Recognize the importance and variety of business insurance, particularly the §79 requirements for group insurance, retired lives reserve, and split-dollar life.
2. Identify the impact of the disallowance of the interest deduction on purchasers and the insurance industry, recognizing the §264 interest limitation on policy loans, specify the benefit of corporate key person life insurance, cite the requirements of COBRA, and determine what constitutes a Voluntary Employee Benefit Association under §501(c)(9).
After studying the materials in Chapter 6, answer the exam questions 59 to 67.

Chapter 7 – Retirement Plans
At the start of Chapter 7, participants should identify the following topics for study:
* Qualified deferred compensation
* Basic requirements of a qualified pension plan
* Basic types of corporate plans
* Types of defined contribution plans
* Self-employed plans – Keogh
* Distribution & settlement options of IRAs
* Tax-free rollovers for IRAs
* Roth IRAs
* Simplified employee pension plans (SEPs)
* SIMPLE Plans
Learning Objectives
After reading Chapter 7, participants will be able to:
1. Identify the types of qualified deferred compensation plans, recognizing their funding limits and recall the ERISA and PBGC restrictions and insurance.
2. Specify the requirements of the basic forms of qualified pension plans, including vesting, contributions, and benefits.
3. Determine the differences between qualified retirement plans and their impact on retirement contributions and benefits, identify the plan termination rules, and recognize self-employed plans from qualified plans for other business types.
4. Identify the requirements of IRAs, SEPs, and SIMPLEs, and define tax-free Roth IRA distributions, specifying strategies to maximize plan benefits.
After studying the materials in Chapter 7, answer the exam questions 68 to 90.

Chapter 8 – Nonqualified Deferred Compensation
At the start of Chapter 8, participants should identify the following topics for study:
* Postponement of income
* Purposes & benefits
* Constructive receipt
* Economic benefit
* Funded company account plan
* Segregated asset plan
* Tax consequences
* Accounting
* Estate planning considerations
Learning Objectives
After reading Chapter 8, participants will be able to:
1. Recognize the postponement of income with a nonqualified plan, identifying nonqualified plan advantages and recognize the impact of constructive receipt and economic benefit concepts.
2. Identify ways to protect unfunded deferred compensation and specify the tax consequences of establishing a nonqualified plan.
After studying the materials in Chapter 8, answer the exam questions 91 to 99.

Chapter 9 – S Corporations
At the start of Chapter 9, participants should identify the following topics for study:
* Advantages & disadvantages
* S corporation status
* Termination
* Income & expense
* Built-in gain
* Passive income
* Basis of stocks & debts
* Distributions
* Form 1120S
* Fringe benefits
Learning Objectives
After reading Chapter 9, participants will be able to:
1. Determine what constitutes an S corporation, and specify the advantages and the disadvantages associated with it.
2. Identify variables that impact whether a business can choose S corporation status and cite ways an S corporation may be terminated, specifying related procedures to be followed.
3. Recognize the taxation and fringe benefits of S corporations as compared to other entity formats, identify the benefits available to S corporations and the related party rules, and specify when the Form 1120S must be filed.
After studying the materials in Chapter 9, answer the exam questions 100 to 119.

Chapter 10 – Business Dispositions & Reorganizations
At the start of Chapter 10, participants should identify the following topics for study:
* Starting a new business
* Buying an existing business
* Reorganization types
* Carryover of corporate tax attributes
Learning Objectives
After reading Chapter 10, participants will be able to:
1. Recognize various business dispositions and tax-advantaged reorganization possibilities, including the types of transactions that qualify as non-taxable reorganizations and identify the factors that determine the corporate tax attributes of an acquired corporation that carry over to the acquiring or successor corporation.
After studying the materials in Chapter 10, answer the exam questions 120 to 125.

To complete this course participants need to: Read the material provided and answer chapter review questions, successfully complete the qualified assessment with a minimum of 70% accuracy to receive your certificate.

A course evaluation form is provided for your feedback and participants have 1 year from the date of purchase/enrollment to complete this course .

Our Refund policy can be found at: https://cpeprime.com/cancellation-and-refund/

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2026 Corporate Tax Planning