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topic 1
Review the IRS webinar on S Corporation Shareholder Stock Basis at https://www.irsvideos.gov/SCorporationShareholderStockBasis/ (you may have to copy and paste the link into your browser). A new client is starting a business, and would like to form an S corporation so that any losses can pass through to his personal tax return. After viewing the video, explain to your client how a shareholder’s stock basis enters into loss limitation rules for S corporations. Be sure to support your comments with information you find in the library or in the IRS code.
top 2
You are working on wealth planning techniques with an elderly client whose health is beginning to deteriorate. The client will soon be entering a nursing home and knows they will eventually run out of money and qualify for Medicaid coverage. To qualify for Medicaid sooner, the individual would like to artificially impoverish themselves by giving away their money and other assets to their children, which must be done at least five years before applying for benefits. Do you believe this practice is ethical? Be sure to support your comments with information you find in the KU library and/or in the IRS code.
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