TCJA Impact on Reasonable Compensation for S Corp Shareholder-Employees. - Video CourseCode: 20-COMPVID

2 Hr Video Self-Study

Description: 

A broad overview of the reasonable compensation rules, including up-to-the-minute changes. Then, we'll cover how the Tax Cuts and Jobs Act affects decision-making in grey areas, and how to determine the optimum amount of compensation (within a reasonable range) for S corporation shareholder-employees.

We'll compare S corporations vs. LLCs under the new tax act.  When do S corporations provide greater qualifying business income deductions (20% passthrough deduction) and when they provide less.

Topics Covered

•  Reasonable compensation case law.
•   When to pay less compensation to increase the 20% passthrough deduction.
•    When to pay a shareholder employee more compensation to increase the 20% passthrough deduction.
•    What amount of wages optimizes the 20% passthrough deduction.
•    When are S corporations better choices for reducing overall taxes and when aren't they.
•     What is the "cost" of paying less in payroll taxes.

Learning Objectives

·       ·          Learn how determine "reasonable compensation" for S corporation shareholders.
·         Apply the reasonable compensation rules in specific settings.
·         Learn to maximize S corporation shareholders' 20% passthrough deduction.
·         Apply a formula to determine the optimum amount of wages to maximize the 20% passthrough deduction.
·         Adjust reasonable compensation (within a reasonable range) to maximize the 20% passthrough deduction. 

Presentation Method:  QAS Self-Study

Category:  Taxes

CPE credit:  2 Hours

Program Level : Update

Prerequisites : None

Advance Preparation:  None

Exam expiration date:  Participants must submit exams for grading within one year from the date of purchase