S Corporation Taxation: Comprehensive-Form 1120S WEBCAST

Overview

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.

Prerequisites

General knowledge in individual and S corporation income taxation.

Designed For

Tax professionals.

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.

Preparation

None.

Notice

None.