This two-day training course provides a comprehensive understanding of the Federal income tax laws applicable to S corporations and their shareholders. The cornerstone of this course is the integration of the most recent tax laws and theories into real-world case scenarios and preparing and reviewing the IRS tax forms and schedules. Attendees will receive a comprehensive S corporation income tax reference manual that includes practice aids, real-world examples, new Federal income tax forms and programs, and Pat Garverick's Quick Reference Chart. This session is taught using a hands-on methodology. Real-world examples and cases demonstrate the complex income tax code and regulations to enhance the participant's learning experience. 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 Pat Garverick’s Quick Reference Chart.
Learning Objectives
• Understand the Federal income tax laws applicable to S corporations and their shareholders from formation to liquidation (i.e. theory) and apply this from a tax-form perspective (i.e. tax preparation)
• Prepare a complete Form 1120S income tax return and related schedules with minimal review points
Major Topics
• An extensive review of the S corporation tax laws with an emphasis on any new legislative changes Form 1120S (and related schedules) preparation issues
• S corporation formation issues and liquidations
• Form 2553 S corporation elections and late IRS election procedures
• Schedule K and K-1’preparation issues including separately and non-separately stated income and expense items (including the 20% qualified business income (QBI) deduction, 3.8% net investment income tax, business interest deduction limitations, fringe benefits and entertainment expenses)
• S corporation revocation and termination and allocation of income during short S and C corporation years
• Unreasonably low officer compensation issues
• Tax treatment of fringe benefits paid to 2% shareholders and family members
• Schedule D’built-in gains (BIG) tax computation and planning opportunities when converting from a C to S corporation
• Excess passive investment income tax issues
• Schedule M-2’detailed step-by-step analysis of the AAA, PTI, E&P and OAA accounts and look at the tax treatment of distributions when the S corporation has prior C corporation earnings and profits (E&P)
• Overview of calculating a shareholder’s stock and debt basis and discuss how S corporation losses and deductions can be limited to basis and the at-risk rules
