Back Search

Overview

8.0 Credits
ONLINE

This comprehensive training is designed to quickly get the accountant up to speed with S corporation formation and preparation issues and a complete understanding of calculating a shareholder’s stock and debt basis. The cornerstone of this course is the in-depth line-by-line analysis of Form 1120S Schedule K and K-1 and how these items affect the shareholder’s Federal individual income tax return.

Objectives

  • Form a S corporation and calculate the corporation’s initial inside basis in the assets and shareholder’s stock and debt basis
  • Prepare a basic S corporation (Form 1120S) Schedule K & Schedule M-2 including the reporting of cash and non-cash distributions 
  • Understand how the schedule K items get allocated to the shareholders on their individual Schedule K-1
  • List the three main reasons for calculating a shareholder’s basis in a S corporation
  • Calculate a shareholder’s stock and debt basis and determine if losses and deductions are limited on their individual income tax return

Major Topics

Each attendee will receive the most comprehensive reference manual with numerous practice aids and real world examples and case studies. Topics include but are not limited to: 

  • Extensive review of the S corporation tax laws with an emphasis on any new legislation 
  • Review the Form 1120S and discuss how items get reported on the S corporation tax return (i.e. page 1 versus Schedule K) and flow-thru to the shareholders on their schedule K-1
  • Analyze the Schedule K-1 line-by-line and discuss where the items get reported on the individual’s Federal income tax return and how the items affect the shareholder’s stock and debt basis
  • Look at detailed Schedule K-1 information reporting to shareholders needed for the qualified business income (QBI) deduction, 3.8% net investment income tax and business interest expense limitations
  • S corporation formation issues under IRC §351
  • Tax ramifications and reporting of distributions at the S corporation level including when the S corporation has prior C corporation earnings and profits (E&P)
  • Preparation of the Schedule M-2 and the ordering rules for distributions out of the AAA, PTI, E&P and OAA accounts

 

Prerequisite

Background in S corporation and individual income tax law

Advanced Preparation

None

Sessions

Please select the appropriate session or option below to continue with your online purchase

Monday, November 11, 2024

General Sessions