Description

This case-driven training is designed to get the inexperienced accountant up-to-speed quickly in the most common areas of S-corporation taxation. The cornerstone of this course is the preparation of the Form 1120S using a fairly complex trial balance common to most S-corporation income tax returns.

Objective

Once participants have completed this session, they should be able to * Form a partnership and calculate the partnership’s initial inside basis in the assets and partner’s outside basis in the entity * Prepare a basic partnership (Form 1065) Schedule K, including the reporting of cash and noncash distributions * Understand how the Schedule K items get allocated to the partners/members on their individual Schedule K-1 * List the three main reasons for calculating a partner/member’s basis in a partnership/LLC * Calculate a partner/member’s outside basis and determine if losses and deductions are limited on their individual income tax return

Highlights

* This session is taught using a Hands-On methodology * Using a comprehensive trial balance, the participant will walk through the steps to prepare a complete and accurate Form 1120S (and related schedules) * Each participant will receive a comprehensive S-corporation income tax reference manual that includes numerous practice aids, real-world examples, new federal income tax forms and schedules, and the Phoenix Beach Quick Reference Chart * Topics include * Detailed coverage of the Tax Cuts & Jobs Act (TCJA) affecting S-corporations * Extensive review of the S-corporation tax laws with an emphasis on any new legislative changes * Schedule K analysis—determined if income statement items are treated as separately (i.e. Schedule K) or nonseparately stated income and expense items * Discuss how Schedule K items get allocated to shareholders on their Schedule K-1s * Look at what relevant information related to the 3.8% net investment income tax needs to be reported to the shareholders * Talk about the unreasonably low officer compensation issues * Learn the special tax treatment of fringe benefits paid to 2% shareholders and family members * Schedule M-1—calculate the reconciliation of income or loss per books with income or loss per income tax return * Schedule M-2—detailed step-by-step calculation of the AAA, OAA, and PTI accounts * Basic overview of the tax treatment of distributions including when a S-corporation has prior C-corporation earnings and profits (E&P) * Review the importance and basics of calculating a shareholder’s stock and debt basis * Basic overview of the potential S-corporation built-in gains tax from the conversion of a C- to S-corporation

Who Should Attend

Tax return preparers, staff accountants, and paraprofessionals with little or no experience and out-of-practice public accountants seeking a basic tax return preparation course

Required Knowledge

None

Advanced Prep

None