Draws By an Owner Employee from a Closely Held Business

Friday, September 18, 2020
Webcast or Webinar, Online
2:00 PM - 4:00 PM(opens at 1:30 PM) EST
2Credits
Technical Business

Registration is Closed

Online registration for this course is now closed. Please contact the Member Service Center at (800) 342-3197 if you wish to inquire about registering.

Members
$79.00 Regular Price
Non-Members
$109.00 Regular Price
Course Type: Webcast
Course Code: 20/ACDOE12
Level: Update
Vendor: ACPEN
Field of Study: Taxes

Overview:

IRS loves to attack payments from closely held businesses to owners, particularly owner employees.  The story is as old as the hills, but lately it plays out with some unexpected twists and turns.  Lessons learned from recent developments provide meaningful guidance as to how to structure to achieve optimal tax treatment of such draws.

This course was updated on April 3rd, 2019

 

**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to leighanne.conroy@acpen.com.

Objectives:

  • To empower the participant to understand each context within which draws by owner employees from their closely held businesses are taxed 
  • To master how to structure such payments for best tax results

Presenters:

Major Topics:

  • How the rules for owner draws from C corps, S corps, partnerships, LLCs and sole proprietorships differ by context
  • Trends in reasonable compensation for C corps, S corps and partnerships
  • IRS' recent attack on "reasonable rents" (how do you figure a "reasonable rent" anyway?)
  • Structuring a reasonably low salary from an S corp
  • Structuring a reasonably low guaranteed payment from a partnership (can it even be done?)
  • Recent case instructing how a loan to an S corp can be repaid (by the S corp) (even when the repayment pays the shareholder's personal expenses)
  • How other taxpayers fail big on the loan repayment argument
  • IRS' recent constructive dividend frenzy in Tax Court
  • How C corps may not be as bad as you think
  • How S corps are faring better in the courts than partnerships currently (in avoiding employment tax) and what to do about it
  • Proper structure of loans and "capital to loan" ratios to keep it clean

Designed For:

Any person desiring to properly structure the draw of cash or property from a closely held business to its owner (typically owner employee) to achieve intended tax results

Prerequisite:

None