S Corp Redemptions: Characterization, Tax Consequences, Application of Sections 302 and 301
Sale or Exchange vs. Distribution, Evaluating Conversion to a C Corp, Available Tax Planning Techniques
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE course will provide tax counsel and advisers with a specific and practical guide to navigating the tax rules that apply to the redemption of S corporation interests. The panel will discuss characterization as a sale or exchange versus distribution, tax consequences associated with such transactions under the new tax law, application of Sections 302 and 301, and available planning techniques to structure transactions and avoid unintended tax liability.
Outline
- S corporation redemptions and the impact of tax reform
- Stock redemptions under Section 302: application, tax consequences, exceptions
- Section 301 and tax consequences of failing to qualify under Section 302
- Best practices and tax planning techniques in structuring a redemption
- Converting to a C corporation: key considerations, potential tax traps
Benefits
The panel will review these and other key issues:
- Structuring S corporation redemptions post-tax reform
- Under what circumstances would redemption be disadvantageous to the S corporation or shareholders?
- Application of Section 302 and meeting the requirements of a sale or exchange and exceptions
- The application of constructive ownership under Sec. 318 about Sec. 302
- Tax consequences of distribution under Section 301
- Best practices and planning opportunities in structuring redemptions
Faculty
-
Close
Michael Kosnitzky
Partner
Pillsbury Winthrop Shaw Pittman
Mr. Kosnitzky, co-leader of Pillsbury Winthrop Shaw Pittman’s Private Wealth practice, advises some of the... | Read More
Mr. Kosnitzky, co-leader of Pillsbury Winthrop Shaw Pittman’s Private Wealth practice, advises some of the world’s most well-respected individuals, families and privately held businesses, using a holistic risk-assessment approach to the law. He was recently named as a Lawdragon 500 Leading Lawyer for 2020 which honors him as one of the top 500 attorneys in the United States irrespective of practice area. Mr. Kosnitzky has also been recognized in various other publications including Chambers, Legal 500, Best Lawyers, Super Lawyers and as a Trust and Estates Trailblazer by the National Law Journal for his focus on where IRS policy is going and not necessarily where it stands today. His tax-minimizing strategies guide financial and strategic buyers in complex taxable and tax-free mergers and acquisitions; privately held businesses in estate tax-efficient succession planning; private investment funds in their choice of jurisdictions and structures; wealthy families in generational real estate income tax and estate tax planning; individuals and family offices regarding artwork and collectables; and ultra-high-net-worth individuals in U.S. and foreign trust matters. Mr. Kosnitzky, who is also a certified public accountant, is a prolific writer on diverse tax topics and the co-author of two treatises on S corporations. The S Corporation: Planning and Operation and The S Corporation Answer Book, both Wolters Kluwer publications.
Close