You Can Have It Both Ways! Subchapter S Conversions, Coming and Going

An S corporation can provide certain tax benefits that are unavailable to a C corporation. The relatively new qualified business income deduction, for instance, offers S corporation shareholders the ability to shelter up to 20% of their qualified business income from taxation, a benefit unavailable for C corporation shareholders. An S corporation shareholder is also entitled to debt basis for shareholder loans to the corporation, and can use that basis to deduct losses and deductions. This practice note  addresses certain U.S. federal income tax considerations when converting a C corporation to an S corporation and when converting an S corporation to a C corporation. 

READ NOW »

Related Content

• Tax Issues and Considerations in Entity Conversion (C Corporation to Partnership) (Partnership to C Corporation)
  Plan for the tax impact when a business entity changes form.  This practice note addresses certain U.S. federal income tax considerations when converting a C corporation to a partnership, and when converting a partnership to a C corporation. 
• S Corporations: Tax Considerations When Liquidating
  Learn the tax issues that arise in the liquidation of an S corporation. The tax analysis of the liquidation of an S corporation is the same as for a C corporation. Whether the payment is made in property or money, the funds are treated as the consideration exchanged for the stock. However, the unique tax treatment afforded to S corporations brings further complexities and tax issues, including the pass thru tax treatment and built-in gain rules. 
• Eligibility Requirements for S Corporations
  Read this practice note which describes the decision to form an S corporation, analyzes the eligibility criteria for S corporation status, and discusses the compliance and reporting requirements faced by S corporations. 

Practical Guidance Updates
Featuring the latest updates in Practical Guidance.   

• What DOJ’s 1st PPP Fraud Settlement Can Teach Borrowers
• How the Remote Sales Tax Legal Landscape Is Evolving
• An In-House Counsel’s Guide to Better Work Management
• How Rebooted Paycheck Protection Program Works: Part 1
• How Rebooted Paycheck Protection Program Works: Part 2
• Final Section 451 Regulations Provide Additional Clarity and Limited Relief
• The Practical Guidance Journal Spring 2021 Edition, Details of the “New and Improved” Paycheck Protection Program

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+