The TCJA reduced the corporate income tax rate to a flat 21%, motivating many S corporations to consider converting to C corporations. With tax rate hikes looming on the horizon and significant changes to the Code anticipated, the S corporations that terminated their S elections, however, may soon find themselves desiring to regain S status. Likewise, depending upon the provisions of the soon to be enacted tax legislation, some S corporations may desire to obtain C corporation status.
Larry Brant's presentation explores C to S and S to C conversions, including the potholes and obstacles that exist along the way such as the built-in-gains tax, LIFO recapture, excessive passive income, unreasonable compensation, personal holding company status, excessive accumulated earnings, and re-election time restrictions. Additionally, he will briefly explore leaving corporate solution altogether.
For more information about this program, visit the OSCPA website.