Preparing S Corporation Returns

PROGRAM CONTENT

The course provides continuing professional education (CPE) to enhance competence in preparing income tax returns for S corporations. Subject matter includes electing S corporation status, basics of S corporation taxation, preparation of Form 1120-S, U.S. Income Tax Return for an S Corporation, accompanying forms and schedules, flow-through income and deductions for shareholders of S corporations, and end of an S corporation.

CPE CREDIT HOURS

4 Credit Hours. One 50-minute period equals one CPE Credit Hour.

LEARNING OBJECTIVES

• Basics of S Corporation Tax Return Preparation
  • 1-A Recognize the similarities between reporting income and expenses on Form 1120-S, U.S. Income Tax Return for an S Corporation, and other business tax entity tax returns.
  • 1-B Identify the characteristics that enable an entity to be eligible to be an S corporation.
  • 1-C Recognize the necessary steps to elect S corporation status.
  • 1-D Calculate a shareholder’s basis in his or her S corporation ownership.
  • 1-E Differentiate between taxable and nontaxable S corporation distributions.
• S Corporation Scenario - Day One Through End of Year
  • 2-A Identifying the steps required for S corporation formation.
  • 2-B Recognize the requirement that reasonable compensation be paid to S corporation shareholder-employees.
  • 2-C Distinguish amortizable organizational costs and start-up costs.
  • 2-D Recognize the benefits of an accountable plan expense reimbursement arrangement for a shareholder-employee.
  • 2-E Compute short-year depreciation for the first year of the S corporation’s existence.
• Comprehensive S Corporation Example - Preparing Form 1120-S
  • 3-A Identify the different tax year options available for S corporations.
  • 3-B Reconcile an S corporation’s payroll report to extract figures necessary to report on Form 1120-S, U.S. Income Tax Return for an S Corporation.
  • 3-C Indicate where to report income and expense items on the S corporation return.
  • 3-D Recognize items which are separately stated and flow directly through to shareholders on Schedules K and K-1.
  • 3-E Identify where S corporation items from a shareholder’s Schedule K-1 are reported on the shareholder’s individual tax return.
• Ending an S Corporation
  • 4-A Determine classes of assets upon sale of a business for reporting on Form 8594, Asset Acquisition Statement.
  • 4-B Differentiate asset allocations favoring the buyer or the seller in the sale of a business situation.
  • 4-C Identify the tax consequences to shareholders upon the liquidation of an S corporation.
  • 4-D Recognize how the sale of a business is reported by an S corporation.
  • 4-E Determine where to report the sale of the S corporation business on the shareholder’s Form 1040 and supporting schedules.

RECOMMENDED PARTICIPANTS

Tax professionals who prepare individual income tax returns are encouraged to participate in this course.

PROGRAM LEVEL

Intermediate. This course provides information on a knowledge level that builds on a basic program and will be most beneficial for tax professionals with detailed knowledge in the area. Such persons are often mid-level personnel with operational and/or supervisory responsibilities.

*All CE hours issued by The Tax Book