Description
The use of QSubs provides tax planning opportunities for electing S corporations. QSubs are treated as a disregarded entity for tax filings, simplifying tax reporting, and can provide liability protection and segregation of separate lines of business. An S corporation electing QSub treatment for a corporation can do so tax-free, provided Section 332 and 337 requirements are met.
Along with the advantages of QSubs, there are caveats to consider. The proposed subsidiary must meet the general S corporation requirements, including having no more than 100 shareholders and being a domestic entity. A sale of QSub stock is treated as an asset sale for tax purposes and could create unanticipated tax consequences for its parent. Tax practitioners working with flow-through entities must understand the tax planning opportunities presented by QSubs.
Listen as our panel of pass-through entity experts explains the benefits and caveats of QSubs.
Presented By
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
Date + Time
- event
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Tax planning with QSubs: introduction
II. Qualifications
III. Benefits
A. Liability protection
B. Separating business activities
C. Simplified tax filing
D. Tax-free liquidation
E. Other benefits
IV. Caveats
A. Sale of QSub stock
B. State implications
C. Other caveats
V. F-Reorganizations
VI. Form 8869 Qualified Subchapter S Subsidiary Election
VII. Revenue Procedure 2022-19
VIII. Late filing relief
The panel will cover these and other critical issues:
- Corporations qualifying for QSub elections
- Benefits of making a QSub election
- Remedies available for late and missed elections
- Filing Form 8869, Qualified Subchapter S Subsidiary Election
Learning Objectives
After completing this course, you will be able to:
- Identify qualifications of corporations electing QSub treatment
- Determine how to complete Form 8869 to elect QSub status
- Decide what relief is available for late QSub elections
- Ascertain how QSubs elections are utilized in tax planning
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite:
Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and their respective partners and shareholders.
BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
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