Reviewing S-Corp Returns

Objectives:

Learning Outcomes

• Determine how transfers to corporations in exchange for stock can be nontaxable under IRC Section 351.
• Calculate the balance in an accumulated adjustments account and enter that calculation on Form 1120S, Schedule M-2.
• Determine how distributions to an S corporation shareholder are taxed.
• Determine how capital gains and losses are disclosed on Form 1120S.
• Determine how installment sales are disclosed by S corporations.
• Calculate the excess net passive income tax for an S corporation.
• Identify and properly report cost recovery deductions on Form 1120S and the associated Schedule K-1s issued to shareholders.
• Determine the tax consequences when a newly converted S corporation sells appreciated property it acquired while operating as a C corporation.
• Calculate and properly report the tax consequences associated with the distribution of appreciated property by an S corporation to a shareholder in redemption of stock.
• Accurately determine how to allocate S corporation pass-through items when the shareholders' interests in the corporation change during the tax year.

Major Topics:

Key Topics

Common errors made involving the following tax forms:

• Form 1120S
• Schedule K-1
• Schedule L
• Schedules M-1 and M-2
• Form 4562
• Form 4797

Designed For:

Who Will Benefit

CPA managers and partners

Prerequisite:

Basic knowledge of S corporation taxation