Phoenix Beach, LLC © ALL RIGHTS RESERVED.
© Phoenix Beach, LLC
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
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:
S-Corp Preparation, Basis Calculations & Distributions – Form 1120S Schedule K & K-1 Analysis