An "S" corporation in an estate or trust poses many interesting and important issues for tax practitioners. What types of trusts can be "S" corporation shareholders? How is "S" status preserved when a shareholder dies? How does an estate or trust materially participate in the activities of an "S" corporation for purposes of the PAL rules? This session will address these questions and other important issues that can trip up even the most seasoned practitioner.
To identify trusts that are eligible S corporation shareholders, and understand their income tax treatment
To understand the special tax rules that apply when an S corporation shareholder dies
To understand how the passive activity rules apply to estates and trusts holding S corporation stock