Proper Financial Accounting for Tax Driven Entities

Overview

Proper financial accounting for tax-driven entities is essential to ensure compliance with tax laws, optimize tax liabilities, and maintain transparent financial records. This process involves the accurate recording, reporting, and management of financial transactions in a manner that aligns with both accounting standards and tax regulations. This course examines the proper financial accounting for these tax driven entities, with a focus on how to remain compliant with tax laws but also strategically manage their tax liabilities and ensure their financial stability.

Highlights

• Importance of capital accounts
• Book vs tax capital accounts
• Partnership capital contributions
• Section 704(b) capital rules and OCBOA
• GAAP balance sheet impact of capital contributions
• Bonus and Goodwill methods
• Ceiling Rule and Remedial allocations
• GAAP partner capital accounts
• Deferred tax accounting for S Corporations
• S elections and terminations - dealing with deferred taxes
• Financial accounting for capital stock and retained earnings
• S corporation shareholders' equity
• Tax vs financial accounting for Accumulated Adjustments Account
• Basic Codification Principles: Matching, Conservatism, Materiality
• Financial accounting for loans to and from S shareholders
• Planning strategies and potential pitfalls

Prerequisites

Basic working knowledge of business taxation.

Designed For

CPAs in public practice and members in industry seeking a better understanding of financial accounting for partnerships, S corporations and LLCs.

Objectives

• Apply financial accounting concepts to partnerships, S corporations and LLCs
• Identify planning strategies and potential pitfalls.

Preparation

None

Notice

• This event is paperless unless you elect to pay for printed materials. • All materials will be available to download in advance and participants will receive an email two days prior to the course date. • Materials will also be posted in the “My CPE” section of the NESCPA website. • Parking and lunch are provided on-site