S-Corp Preparation, Basis Calculations & Distributions – Form 1120S Schedule K & K-1 Analysis
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Training for Business Professionals
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.
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
- Prepare a basic S corporation (Form 1120S) Schedule K & Schedule M-2 including the reporting of cash and non-cash
- 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
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-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, PTI, E&P and OAA accounts
Who Should Attend?
Tax professionals that need an in-depth training course on tax preparation issues, basis calculations and distributions rules for S-Corporations and their shareholders.
Area of Study: