Defining A Small Business According To The Internal Revenue Code | Williamsburg , Special Topics
- Course Description
In general, there is no formal distinction between the taxation of “small business” and a “large business” in the Internal Revenue Code. Although the Small Business Administration (SBA) is the primary federal agency for setting small business size standards, the Tax Code does not rely strictly on SBA size standards to determine eligibility for available small business tax benefits. Most of the tax preferences use assets, receipts or employment size to identify eligible businesses. The employment and receipt amounts in the Tax Code are much smaller than the size that is used by the SBA to identify a small business by industry.
Small business tax benefits include deductions, exclusions, exemptions, credits, and deferrals whose main effect is to reduce the business’s cost of capital for affected investments and increase its short-term cash flow.
This course reviews the federal income tax provisions of the business entity defined as a “small business” according to a number of provisions in the Code.
This course will explore the tax issues of the “small business” owner who is a sole proprietorship filing a schedule C or a one owner Subchapter S-Corporation as well as two or more owners doing business as a small partnership or corporation whether as a Subchapter C or Subchapter S.
This presentation will review a “small business” relevant to compliance issues at hand. Some of the Code provisions for a “small business” that will be discussed include the following:
- §1244 ordinary loss treatment for losses on the sale of “eligible small business stock” capitalized at $1M or less
- §179 expense election deduction limitation on the annual acquisition of fixed assets of up to $1,160,000 in 2023
- §45E tax credit for startup cost for establishing qualified employee retirement plan for an employer with 50 or fewer eligible employees
- §45T tax credit for employers when offering or starting a §401K plan or a SIMPLE plan for an employer with 100 or fewer eligible employees
- §44 tax credit for cost incurred for small firms complying with the Americans With Disability Act for an employer with 30 or fewer eligible employees
- §446 cash basis accounting if the average gross receipts in the three prior years are less than $29M
- §1202 small business stock exclusion for firms capitalized at $10 million or less
- §163(j) exemption from the limitation on the deduction for business interest expense if the average gross receipts in the three prior years are less than $29M
- §263A exemption from uniform capitalization rules if the average gross receipts in the three prior years are less than $29M
- §45R tax credit for small firms that offer qualified health insurance coverage to employees and the small business has no more than 25 full-time equivalent employees
- §1361 small business corporation that does not have more than 100 shareholders which makes an election to be taxed as a subchapter S corporation
The course will also include a discussion on when a “small business” is required to file Schedules L, M-1, M-2 and Schedule M-3, etc.
- Learning Objectives
At the conclusion of this presentation, the Tax Professional will have a better understanding that the definition of a “small business” for purposes of the Internal Revenue Code depends on various items such as:
- Gross receipts of the business,
- Number of employees,
- Number of owners,
- Amount of capital invested in the company, as well as
- Annual amounts spent for the acquisition of fixed assets in the form of equipment and machinery.
In addition, the participant will have a broader knowledge base when discussing these important items with their clients and in tax planning opportunities. This presentation will also assist the Tax Professional when the small business is deciding whether to expand or to contract its operations and investment.
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Yes. Each attendee will need to make their own travel and hotel reservations.
Your registration confirmation will be emailed to you when your payment is processed. During our busy season, this can take up to 2-3 business days after we receive your registration.
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Your certificate will be emailed to you within 10 business days of the completion of the course.
- Refunds or transfers to future education are allowed up to 7 days prior to the beginning of the course.
- A $25 administrative fee will be charged for all course changes.
- There are no partial refunds or discounts if a portion of the course is missed.
- Once the Course Materials PDF is emailed, refunds are no longer available for that course.
- Registrations must be received no later than 7 days prior to the beginning of the course.
- Registrations received after this date will be subject to a $35 late fee.
- A $25 administration fee will be charged for all course changes.
- An administrative charge of $25 will be assessed when any requested course changes are made.
- Live courses may not be retaken without additional payment.
- NSTP reserves the right to cancel any program or course for circumstances that are not under direct control of NSTP. If a course or program is cancelled, participants will be refunded 100% of their registration fee.
- We do not accept walk-in attendees. Payment must be received in advance of the class.
- Special Topics materials and Special Topics presentations are intended to stimulate thought and discussion and to provide attendees useful ideas and guidance in the areas of federal taxation and administration. These materials as well as the comments of the instructors do not constitute and should not be treated as tax advice regarding the use of any tax procedure, tax planning technique, device or suggestion, or any of the tax consequences associated with them.
- Although the NSTP has made every effort to ensure the accuracy of the materials and the seminar presentation, neither the author, the presenter nor the National Society of Tax Professionals assumes any responsibility for any individual’s reliance on the written or oral information presented during the presentation. Each attendee should verify independently all statements made in the materials, and during the seminar presentation, before applying them to a particular fact pattern and should determine independently the tax and other consequences of using any device, technique, or suggestion before recommending the same to a client or implementing the same on behalf of a client, or on the attendee’s own behalf.
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- Only paid registrants can attend seminars. In consideration of your fellow attendees, guests will need to depart before the session begins.
- Executive/Charter Members will be charged a $150.00 administration fee if they fail to cancel a course registration and fail to appear for the seminar.