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Planning for Business Exits from C Corporations; Intrafamily Business Transactions; Other Developments

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Steve Gorin, CPA

Thompson Coburn LLP

Wednesday, March 18, 2020 | 10:00 AM EDT

  • CPA
  • EA

1.5 Credits

$10

Subject Area

Taxes

Course Description

Lower C corporation income tax rates have increased attention to the Code § 1202 exclusion for gain on sale of stock.  In this webinar we will discuss how that and related provisions work, how they compare with other business exit strategies and a recent Tax Court case that informs intrafamily business sales and loans. We also mention a new favorable IRS position regarding deducting charitable contributions that generate state tax credits for business owners.

Major Topics Covered :

  • Annual Charitable Contributions for Businesses after 2017 Tax Reform
  • Code § 1202 Exclusion
  • Sale of C Corp Stock – Code § 1202 Exclusion and Other Issues
  • Stock issuance requirements
  • Which businesses qualify
  • Business Structure
  • Gain on Sale
  • Intrafamily Business Transactions

Learning Objectives

  • How the Code § 1202 exclusion works, how it applies when a business changes from another entity to a C corporation, how it informs a C corporation’s business structure, and how it compares to other business exit strategies.
  • How to move from corporate status to a partnership once the tax benefits of being a C corporation has run its course.
  • The impact of Dynamo Holdings Ltd. Partnership v. Commissioner, T.C. Memo. 2018-61, which addresses sales and loans between businesses owned by related parties. It limits the application of a taxpayer-friendly 2009 case on business transfers but also provides hope for those with relaxed documentati
  • How states’ reactions to 2017 tax reform imposing a limit on state income tax and personal property tax deductions led to the IRS attacking state tax credits awarded for charitable contributions, which ironically resulted in a Revenue Procedure that provides favorable rules when businesses make thos

Who Should Attend?

  • Accountant
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • Entrepreneurial CPA
  • Tax Accountant (Industry)
  • Tax Attorney
  • Tax Director (Industry)
  • Tax Firm
  • Tax Managers
  • Tax Practitioners
  • Tax Preparer
  • Young CPA

Testimonial

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    [average] => 4.0000
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JM

It appears that presentations can be pretty interesting with some hard work. Steve did a great job while presenting the webinar. He even solved every single query at the end of webinar. Also, shoutout to myCPE for initiating their 1 credit 1 meal program.

MM

I was able to relate some of the situations faced. The webinar was a good value for me. The presentation was very enjoyable and relevant ! Thank you for sharing a wealth of information.

PJ

It was a good presentation and content webinar. Examples were very interesting. It was full of effective learning.