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

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.

**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

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 (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

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

Background in individual and business income tax law

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by ACPEN. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.