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© Phoenix Beach, LLC 

Training for Business Professionals

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:
Taxation

Level:
Intermediate


Credit:
8 hours

Prerequisite:
None

Advance Preparation:
None

Type:
Group Live


Date Available:
June 1

Course code:

SBAD

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.


Learning Objectives:

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 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 and determine if losses and deductions are limited on their individual income tax
   ​ return


Course 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-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

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