S Corporation Preparation, Basis Calculations & Distributions - Form 1120S Schedule K & K-1 Analysis WEBCAST

Overview

This comprehensive training is designed to get the accountant up to speed quickly with S corporation formation and preparation issues as well as 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 the Form 1120S Schedule K and K-1 and how these items affect the shareholder’s Federal individual income tax return.

Highlights

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 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 Sect. 351. Tax ramifications and reporting of distributions at the S corporation level including when the S corporation has prior C corporation earnings and profits. Preparation of the Schedule M-2 and the ordering rules for distributions out of the AAA, PTI, E&P, and OAA accounts.

Prerequisites

Background in S corporation and individual income tax law.

Designed For

Tax professionals that need an in-depth training course on tax preparation issues, basis calculations and distributions rules for S-Corporations and their shareholders.

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.

Preparation

None.

Notice

None.