Tax Considerations and Consequences for Closely Held Businesses

Provide insightful recommendations for the challenges faced by your closely held business clients. Employ smart business decisions that will minimize the tax burden, not only on the business, but also on the owners. These concepts are uniquely laid out in this CPE course to allow you to easily and quickly identify those tax-saving strategies that fit your client's situation.


Recall the forms of business entities that are recognized for federal tax purposes
Determine proper entity classification under the check-the-box regulations
Recognize substantial economic effect for partnership allocations
Determine the partnership book value of contributed assets
Calculate the outside basis of a partner or S corporation shareholder
Distinguish passive activity deductions from other types of deductions
Determine sources of self-charged interest income
Identify the circumstances in which a rental activity will not be considered to be passive
Recognize payments that are classified as guaranteed payments under Subchapter K
Distinguish between general partners and limited partners under the 1997 proposed regulations
Differentiate between employees and independent contractors
Identify the relevant factors with respect to worker classification issues
Identify the various types of defined contribution and defined benefit plans
Recognize the types of retirement plans for which a "rabbi trust" is used
Recognize the tax consequence of the hobby loss rules under IRC Section 183
Apply the statutory presumption under Section 183
Determine the types of tax credits that are available to closely held businesses
Identify the phase-out levels for the Small Business Health Care Credit
Recognize the circumstances in which cancellation of debt income may be excluded
Distinguish the types of entities that are not subject to the attribute reduction rule


Exploring entity options
Maintaining capital accounts and basis
Passive activity and at-risk issues for the closely held business
Compensation payments and employee benefits
Retirement benefits and deferred compensation
Nexus perplexus: Minimizing exposure to multistate taxation
Ensuring business losses are allowed
Discovering underutilized tax credits
Navigating financial turmoil in the closely held business - cancellation of debt, bankruptcy, involuntary dissolution
Succession planning

Additional Information

Designed For

Managers and partners in public accounting who assist clients with tax planning and transactions
Owners and CFOs of closely held businesses


American Institute of CPAs

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