State Fiduciary Income Tax; S Corp. Ownership; Basis Step-Up Strategies
You have completed only 0% of the video. Please continue watching the video.
Please don’t fast forward or alter the cursor of the video. You must watch entire video to get your CPE credits.

Before starting this self study progarm, please go through the Instructional Document.

Download

Course Details

Overview of Topics

  • What is State Fiduciary Income Taxation - Kaestner 1992 Family Trust Case?2 mins
  • State Income Taxation of Business Income - How did State Income Taxation of Business Income get influenced with business investment income?13 mins
  • Which are the key Recent Developments in S Corporation Ownership and Shareholder Agreements?41 mins
  • How to get Basis Step-up?71 mins
  • Key tools to cover basis step-ups75 mins
  • Which are the tax consequences of modification?83 mins
  • Important considerations for General Power of Appointment91 mins
  • Consequences of Trust Modification100 mins
  • Query session102 mins

Course Description

The U.S. Supreme Court decided Kaestner regarding a state’s ability to impose income taxation on a trust. We will discuss the holding and its context when trusts hold business interests. Recent regulations and rulings regarding S corporation ownership are worth noting. Finally, basis step-up is becoming more important than estate tax planning for many taxpayers; we will discuss trust modifications (including a possible formula general power of appointment) and other tools.

Learning objectives

  • What Kaestner did and didn’t do regarding the constitutional limits imposed on state income taxation of trusts.
  • How state income taxation of business operations and sales of businesses affect trusts that own businesses.
  • How the government protects against revenue loss from recent changes expanding who beneficiaries of trusts owning S corporations can be.
  • When shareholder agreements governing sales of S corporation are or are not likely to violate the single class of stock rules, contrasting two 2019 private letter rulings.
  • Various strategies to plan basis when a beneficiary dies.

About Presenter

Steve Gorin, CPA

Advisor,Thompson Coburn LLP

sgorin@thompsoncoburn.com

Steve has drafted trusts and a full range of estate planning documents for clients to help grow, preserve, and transmit their family wealth. He has also drafted organizational documents for limited liability companies, corporations, and partnerships to implement their owners' wishes regarding current and future control and transmission, including bringing in new owners and facilitating exit strategies. 

Steve enjoys helping clients structure their affairs to achieve their achieve their personal, business, and financial goals while trying to reduce the drag that taxes impose on them. His firm provides full service to businesses; however, he also act as counsel on specialized matters while cooperating and facilitating the continued involvement of an existing legal, accounting, and financial services team. Steve maintains his CPA license but prefer to refer income tax returns to practicing CPAs.

Steve Gorin is former president and an ongoing contributor to strategic initiatives of Covenant Place, a senior affordable housing community with a groundbreaking model for integrated residents with the surrounding community and facilitating holistic services to enrich their lives. 

To know more about Steve Gorin, kindly click on the link below:

http://thompsoncoburn.com/people/steve-gorin



For almost 90 years, Thompson Coburn LLP has provided the quality legal services and counsel our clients demand to achieve their most critical business goals. With more than 380 lawyers and 40 practice areas, we serve clients throughout the United States and beyond. Whether helping with a real estate or employment issue, navigating a complex acquisition or defending a product or service in litigation, we have the knowledge and resources to meet any legal need.

Here's a link to the free resources that Thompson Coburn has to offer:

https://www.thompsoncoburn.com/insights/blogs/business-succession-solutions/about

Review Questions

  • Question 1 : 00:15
  • Question 2 : 00:30
  • Question 3 : 00:45
  • Question 4 : 01:00
  • Question 5 : 01:15
  1. If Mr. Nathan Parr is a resident of the Texas state having a substantial business interest in the state of Utah through his S Corporation headquartered in Texas, which one of the following is false in the opinion of the speaker?
  2. Mr. Bod is a nonresident alien and holds stock in an electing small business trust or ESBT. In which of one the following is true?
  3. Bonnie a nonresident alien is a deemed owner of a trust located in Baton Rouge Louisiana. Which one of the following should he do to take benefit of this position to save the trust from the tax?
  4. Which one of the following is correct with reference to the recent developments in S corporation ownership and shareholder agreements?
  5. The primary beneficiary’s power to appoint does not apply to which one of the following assets held by the trust?
  1. Which one of the following is the part of the Basis step-up tools?
  2. Why did the Supreme Court take a very narrow holding and decided to avoid providing general guidance in the case of Fielding?
  3. Mr. Ronald Rich, a resident of Mississippi, holds an interest in 3 member LLC that is a pass-through entity having a significant business in California. For the federal income tax, the business is considered an LLC. Which one of the following is true for Mr. Ronald?
  4. For the state income taxation of business income, a C Corporation deducts state income tax but the owner of a pass-through entity is subject to the $________ limitation.
  5. If Arthur of Alabama sells his S corporation Bambino Buildings LLC inherited from his father at his death 3 years ago having a property in Florida. Which one of the following tax Arthur would not be able to off-set against loss on the sale of stock?
  6. In which one of the following conditions a nonresident alien may hold the stock in an S corporation?
  7. Which one of the following is true?
  8. According to code § 83 (i) election deferring income tax inclusion income notice 2018-97 the income inclusion should be deferred for up to ___ years for qualified stock issued to a qualified employee?

FAQ

  • myCPE self-study courses are online.
  • The self-study format allows you to access the material online 24/7 and study at your own pace.
  • As per NASBA guidelines, you have one year from date of registration to complete each program.
  • Complete your final exam at any time and get CPE Credit instantly. You can retake the exam multiple times without any additional charges.
  • Course have minimum passing score of 70% and test takers will not be provided feedback on failed exams.
  • Upon achieving a passing score, test takers will be notified of the correct answers to the questions missed.
  • These are Live recorded presentations converted into Self Study (On-Demand Videos).

Refund/Cancellation Policy

  • For more information regarding refund, complaint and program cancellation policies, please contact our offices at 646-688-5128
  • Please email to   help@my-cpe.com  in case of any self study program queries.

Reviews

4.9
(17)
88%
12%
0%
0%
0%
  • BB
    Barbra Battista , CPA
    Jan 29th 2020
    informative and interesting
Maria Galvan Govea , AFSP
Great!
RW
Ryan Woolslayer , CPA
Very good.
KR
Kaisa Rogers
good
SK
Sun Kim , CPA, EA
gr8
JK
Joseph Kiley , MBA, CPA
expertise enjoyed

NASBA Approved

MY-CPE LLC, 1600 Highway 6 South, Suite 250, Sugar Land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

IRS Approved

MY-CPE LLC, 1600 Highway 6 South, Suite 250, Sugar Land, TX, 77478

MY-CPE LLC (Sponsor Id#: GEHNZ) has entered into an agreement with the Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the IRS as to the quality of the program or its contribution to the professional competence of the enrolled individual. Credit earned by attendees with a PTIN will be reported directly to the IRS as required of all providers. To ensure your CPE hours are reported, update your profile in My Account to include your PTIN number. Please note: IRS CE is only mandatory for EAs and ERPAs. For all other tax return preparers, CE is voluntary

CTEC Approved

MY-CPE LLC, 1600 Highway 6 South, Suite 250, Sugar Land, TX, 77478

MY-CPE LLC (Sponsor ID# : 6273) has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, toll-free by phone at (877) 850-2832, or on the Internet at www.ctec.org.

On-Demand Webinars

2021 Annual Federal Tax Refresher Course
Wednesday, July 08, 2020 View Details/Register
Segment Reporting – A Detailed Review
Thursday, August 06, 2020 View Details/Register
Goodwill Impairment Testing
Thursday, August 06, 2020 View Details/Register
Segment Reporting Basics
Thursday, August 06, 2020 View Details/Register
Goodwill Impairment Basics (1 Hour)
Thursday, August 06, 2020 View Details/Register
Revenue – Five Steps to Recognition
Wednesday, July 29, 2020 View Details/Register
GUIDE TO DEPRECIATION UNDER THE TCJA
Wednesday, July 29, 2020 View Details/Register
PAYROLL FRAUD INFORMATION AND DISCUSSION
Wednesday, July 29, 2020 View Details/Register
Forecasting in a Time of Uncertainty (COVID-19)
Tuesday, July 28, 2020 View Details/Register
TAX IMPLICATIONS AND PLANNING DUE TO COVID-19
Tuesday, July 28, 2020 View Details/Register
UBIT Under The TCJA
Tuesday, July 28, 2020 View Details/Register
Tax Planning Under Tax Cuts & Job Act : 10 Tips to Reduce Taxes for your Clients
Tuesday, July 28, 2020 View Details/Register
Tax Consequences on the CARES Act – Overview of major tax issues from the CARES Act and related notice including planning tec
Monday, July 27, 2020 View Details/Register
CECL Overview
Monday, July 27, 2020 View Details/Register
Accounting for Business Combinations Overview
Monday, July 27, 2020 View Details/Register
  • Cost $9
  • CPE Credits 1.5
  • CE Credits 1
  • IRS Course ID GEHNZ-T-00091-19-S
  • CTEC Course ID 6273-CE-0066
  • Subject Area Taxes
  • Course Level Basic
  • Instructional Method QAS Self Study
  • Prerequisites None
  • Advanced Preparation None
  • Recorded Date November 21 ,2019
  • Published Date November 21 ,2019
  • Who should attend? Enrolled Agent Tax Attorney Tax Practitioners Accountant Others CPA - Small Firm CPA - Mid Size Firm CPA - Large Firm Accounting Firm Tax Pros CPA (Industry) Auditors Tax Firm Young CPA CPA in Business Entrepreneurial CPA Tax Accountant (Industry) Tax Director (Industry) Accounting Practice Owners Entrepreneurial Accountant
  • Handout Material Download
  • Key Terms Download

On-Demand Webinars

2021 Annual Federal Tax Refresher Course
Wednesday, July 08, 2020 View Details/Register
Segment Reporting – A Detailed Review
Thursday, August 06, 2020 View Details/Register
Goodwill Impairment Testing
Thursday, August 06, 2020 View Details/Register
Segment Reporting Basics
Thursday, August 06, 2020 View Details/Register
Goodwill Impairment Basics (1 Hour)
Thursday, August 06, 2020 View Details/Register
Revenue – Five Steps to Recognition
Wednesday, July 29, 2020 View Details/Register
GUIDE TO DEPRECIATION UNDER THE TCJA
Wednesday, July 29, 2020 View Details/Register
PAYROLL FRAUD INFORMATION AND DISCUSSION
Wednesday, July 29, 2020 View Details/Register
Forecasting in a Time of Uncertainty (COVID-19)
Tuesday, July 28, 2020 View Details/Register
TAX IMPLICATIONS AND PLANNING DUE TO COVID-19
Tuesday, July 28, 2020 View Details/Register
UBIT Under The TCJA
Tuesday, July 28, 2020 View Details/Register
Tax Planning Under Tax Cuts & Job Act : 10 Tips to Reduce Taxes for your Clients
Tuesday, July 28, 2020 View Details/Register
Tax Consequences on the CARES Act – Overview of major tax issues from the CARES Act and related notice including planning tec
Monday, July 27, 2020 View Details/Register
CECL Overview
Monday, July 27, 2020 View Details/Register
Accounting for Business Combinations Overview
Monday, July 27, 2020 View Details/Register