Description

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.

Objective

Once participants have completed this session, they should be able to * 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 noncash 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 and determine if losses and deductions are limited on their individual income tax return

Highlights

* 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 legislative changes including the Tax Cuts & Jobs Act (TCJA) new 20% qualified business income (QBI) deduction and changes to the interest deduction, fringe benefits, and entertainment expenses * 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-through 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, PTI, E&P, and OAA accounts

Who Should Attend

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

Required Knowledge

None

Advanced Prep

Background in S-corporation and individual income tax law