S Corporation Taxation: Comprehensive-Form 1120S

Description

Obtain a comprehensive review of the laws and regulations impacting S corporations. Be updated on the IRS' compliance campaign that targets the improper reporting and calculations of stock basis and distributions. Learn how to properly calculate and then report critical S corporation tax items that generate most IRS audit adjustments. Course topics cover issues such as S corporation qualifications, making and keeping the S election, reasonable compensation, taxation of distributions, the use of Qualified Subchapter S Subsidiaries, allocation of annual operating income and loss, S corporation tax reporting elections and learning the proper method to calculate the basis of stock and debt amounts.

Highlights

• Discuss all new legislative, administrative, and judicial changes affecting S corporation and shareholders.

• Learn how to qualify and to make the S corporation election.

• Learn the qualifications for S corporation stock ownership.

• Understand how to calculate initial and annual stock and debt basis amounts and the three reasons why they are maintained.

• Understand the four loss limitation rules applied on the shareholder's individual income tax return (I.e., basis, at-risk, passive, and excess business loss limitations).

• Understand the proper tax treatment and reporting of a distribution from the S corporation to a shareholder.

• Learn how to calculate the three S corporation taxes.

• Learn how to calculate AAA and OAA account for an S corporation.

• Determine the impact of health insurance, the net investment income tax, qualified business income tax deduction and unreasonable compensation issues on the reporting function of the S corporation.

Objectives

• Identify how to form a qualified entity and elect S Corp status

• Determine how to properly allocate income and loss items to shareholders on their individual Schedule K-1.

• Calculate an S corporations' initial basis in its assets as well as a shareholder's stock and debt basis in the S corporation.

• Recognize three main reasons for calculating a shareholder's basis in an S Corp.

• Calculate annual adjustments to a shareholders' stock and debt basis and determine if losses and deductions are limited on the shareholders' individual income tax return.

• Calculate the three major taxes attributable to S corporations.

• Learn how to calculate AAA and OAA account for an S corporation.

• Understand the impact of stock redemptions on the AAA and E&P accounts.

• Review basic tax compliance requirements including all of the major S corporation entity tax elections.

Designed For

Tax professionals.