S corporations Tag

The Affordable Care Act (ACA) introduced significant change throughout the United States. One area of change relates to S-corporations and how these corporations provide health insurance to employees. Further, not only did the law change, it also became ambiguous in some areas. Because of the...

Convertible Debt in an S Corporation Because S corporations cannot issue preferred stock, they will often give investors convertible debt that attempts to mimic the preferences they might obtain through preferred stock. However, unless carefully structured, the issuance of convertible debt may terminate a corporation’s S...

In June 2012 the IRS issued REG-134042-07, containing proposed regulations that would clarify the basis of indebtedness of S corporations to their shareholders. The proposed regulations would allow some taxpayers to take greater deductions on the losses of debt-financed S corporations. Background: When a shareholder loans money...

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