Short Answer Questions
1. Provide an explanation of the various types of deductible expenses and their impact on the overall tax situation of an S Corporation.
2. What are the guidelines for handling charitable contributions within S Corporations? How do these affect the shareholders of S Corp's taxes?
3. What are some of the rules that apply to retirement plans under S Corporate forms?
4. How do we typically handle amortization or organizational expenses within S Corporations? What is the main tax rules that one should be aware of in this area?
5. How are losses and expenses incurred and handled in transactions with shareholders typically?
6. Describe the overall corporate tax liabilities that might apply to an S Corporate form and how we handle each from a taxation perspective.
7. How do we handle excess net passive income taxes for S Corporations?
8. Describe how we would handle LIFO inventory recapture within an S Corporate form?
Professional Development Question
You may use one or a combination of the following when completing this exercise:
1. Online research
2. Real-life experiences
3. Interview or professional experts
4. Textbook materials
Write a 1-2 page paper that covers the various types of deductions that S Corporations can leverage in their operations, the qualifiers of each deduction chosen or elected, and limitations to each. Students should also overview the corporate income tax process for S Corporations and the different options and limits that are involved here when declaring
corporate income and expenses.
Students should include at least one reference in their paper submission, in addition to their comments and thoughts on the required content.