Get a comprehensive review of the laws and regulations impacting S corporations. Be prepared to handle the IRS' 2017 announcement that targets the improper reporting and calculations of stock basis.
Course topics cover issues surrounding reasonable compensation, distribution taxation, the use of Qualified Subchapter S Subsidiaries, allocation of annual operational income and loss and proper methods for calculating basis of stock and debt calculations. Learn how to properly prepare a Form 1120S by addressing difficult compliance issues and common errors.
Identify how to form an S corp and calculate its initial inside basis in the assets and shareholder's stock and debt basis.
Show how to prepare a basic S corp (Form 1120S) Schedule K and Schedule M-2, including the reporting of cash and non-cash distributions.
Determine how Schedule K items get allocated to the shareholders on their individual Schedule K-1.
Recognize three main reasons for calculating a shareholder's basis in a S corp.
Calculate a shareholder's stock and debt and determine if losses and deductions are limited on their individual income tax return.
Emphasize any new legislative changes affecting S corporation and shareholders
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 what relevant information related to the 3.8% net investment income tax needs to be reported to the shareholders
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, OAA, PTI and E&P accounts
Designed For: Tax professionals.
Instructor: Troy Lewis, CPA, MACC, CGMA
CPE Credits: 8
Area of Study: Taxes
Prerequisite: General knowledge in individual and S corporation income taxation.
Business and Corporate Taxation,Individual Tax Planning and Return Preparation,Financial Leadership Forum