Latest News Tagged With “shareholders”

The Sub S Bank Report Volume 18, Issue 2

Jul 06, 2015

The Latest Edition of The Sub S Bank Report is Now Available for Registered Members Learn More About: The Capital Access for Small Business Banks Act, H.R. 2789 Shareholder Succession Planning Part 1: ESOPS as a Tool for Shareholder Succession Planning & Employee Engagement Regional Sub S Meetings Recap Legislation to Watch Important Dates To read it log in with your membership information. If you need assistance resetting your log in information or did not receive the email copy to your inbox email Amy Trevino at atrevino@kslawllp.com.   Read more

Congressman Marchant’s Remarks on HR 2789

Jun 18, 2015

U.S. Congressman Kenny Marchant (TX-24) has introduced H.R. 2789, the Capital Access for Small Business Banks Act. The legislation seeks to provide small banks – specifically those classified under Subchapter S of the U.S. tax code – with greater freedom to attract capital investment so they can better serve the families and businesses of their communities. Marchant released the following statement after introducing H.R. 2789: “Small banks are vital to a healthy and growing American economy. Subchapter S banks in particular make up roughly one-third of all U.S. banks and 90 percent of them are located in rural communities. These local banks provide invaluable support to working families and have helped countless American entrepreneurs put their ideas in motion. Yet, when small banks seek to raise capital so they can better serve their communities, our tax code restricts their access to new investment. I have introduced the Capital Access for Small Business Banks Act to fix this problem. “At a time when many small banks are struggling just to stay in business, H.R. 2789 would offer these trusted financial institutions greater freedom to take on new investors and raise capital. In doing so, the bill would bring renewed strength to Subchapter S banks, the communities they serve and the American economy as a whole – without added risk to the broader U.S. financial system. Most importantly, the Capital Access for Small Business Banks Act would bring us one step closer to a tax code that better supports American families and job creators. That’s what small banks and our local communities deserve.”  Read more

Mississippi & Louisiana Regional Meeting

May 13, 2015

Join the Subchapter S Bank Association in Natchez, Mississippi on May 27th for a regional meeting. When Wednesday, May 27, 2015 12:30PM - 3:30PM Where Hotel Vue 130 John R Junkin Drive Natchez, Mississippi 39120 Patrick Kennedy, Jr., of the law firm of Kennedy Sutherland, LLP and founder of the Subchapter S Bank Association, will provide a current update on legislative and regulatory matters affecting Subchapter S banks, including the Capital Access Initiative currently underway. Bennett M. Jeansonne, of Silas Simmons LLP, will provide a review and update on relevant tax and accounting developments. In addition, William D. Sutherland will discuss challenges & opportunities in managing Sub S shareholders, Board and Bank, including specific thoughts on succession planning. Join us for lunch and fellowship and to learn more about the activities of the Sub S Bank Association, meet other Sub S bankers from the region in an informal setting, and to ask questions and discuss specific Sub S issues. Lunch will be served. Please RSVP to Amy Trevino at atrevino@kslawllp.com or 210-551-0094.  Read more

The Sub S Bank Report Volume 17, Issue 3

Dec 29, 2014

      The Latest Edition of The Sub S Bank Report is Now Available for Registered Members Learn More About: "Commitment to Technology: How Long is Too Long?;" "Chairtable Donations of S Corporation Stock and Charities as S Corporation Shareholders" and "Shareholder Divorce and Attribution Rules." To read it log in with your membership information. If you need assistance resetting your log in information or did not receive the email copy to your inbox email Amy Trevino at atrevino@kslawllp.com.  Read more

S Corp Shareholder Basis Increase

Jul 23, 2014

On July 23, 2014, the Treasury Department and Internal Revenue Service (“IRS”) issued final regulations providing guidance on the circumstances under which an S corporation shareholder may increase their adjusted basis due to indebtedness of the S corporation. Internal Revenue Code (“Code”) Section 1366(d)(1) generally provides that the aggregate amount of losses and deductions taken by a shareholder in any tax year cannot exceed the sum of the shareholder’s adjusted basis in its stock and the adjusted basis of any indebtedness of the S corporation to the shareholder. To the extent a shareholder does not have sufficient basis in their stock to take losses in a particular year, they may use a loan to the S corporation to increase their basis and avoid having to carry forward losses to a subsequent year. The final regulations describe the circumstances under which such loans will be treated as “bona fide” indebtedness of the S corporation to the shareholder – allowing the shareholder to increase their basis by the amount of the indebtedness and recognize the losses currently.  Read more