Tax Cuts and Jobs Act Guide to Choice of Entity

Exam Questions: 20
Course Level: Intermediate
Pages: 132 | Content: 120, Supplemental: 12
NASBA Area of Study: Management Services
Not Acceptable for: Enrolled Agents
Version: 7725A

The Tax Cuts and Jobs Act directly impacts how C corporations and pass-through entities will be taxed, thereby causing some businesses to reconsider their current entity structure. This course will discuss the factors involved in choosing a form of business entity under these rules. It will provide a solid understanding of the tax implications of choice of entity, the advantages and disadvantages of changing entities, and the factors to consider before making that decision. PLEASE NOTE: Not accepted for Enrolled Agents. All course material provided. Prerequisites: Understanding of taxation of pass-through entities. Course level: Intermediate.

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Course Information

Table of Contents
  • Introduction
  • Entities Analyzed in This Guide
  • Principal Factors Influencing Choice of Entity
  • Tax Rates
  • Relationship of Owners to Business Entity
  • Ownership of Real Estate by the Closely-Held Business
  • Exit Strategies
  • Entity Changes
  • Fringe Benefits
  • Conclusion: Tax Rates, Distributions, and Entity Choice
  • To identify the types of entities that have emerged over time in the United States and their tax treatment
  • To recall tax rates for different entities
  • To identify some of the differences between a widely-held and a closely-held business
  • To recall the outcome of the Wharton study
  • Recognize the tax treatment of real estate held inside or outside of a corporation
  • To identify features of asset transfers and equity transfers
  • To recall some of the ways in which an entity can change from one status to another
  • To recognize the tax treatment of specific fringe benefits
  • To identify the type of business entity that is most advantageous in various situations

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