Description
Understand the advantages and disadvantages of forming an S Corporation.Corporations can find the double taxation of income a burden. By qualifying as an S Corporation, the corporation can avoid double taxation. The requirements to elect S Corporation status are specific and must be followed to avoid losing S Corporation status. This presentation will help you guide your clients when determining if S Corporation status is the right business structure for their needs, prepare the necessary S Corporation election forms, and prepare the Form 1120S tax return and accompanying Schedule K1s.
Date: 2022-11-09 Start Time: End Time:
Learning Objectives
Define S Corporations and the Purpose of Form 1120-S
• Electing and Terminating S Corporation Status and Relief for Late Filed Election
• Report Income, Gains, Losses, Deductions, Credits, and Other Information From the Operations of an S Corporation
• Pass-Through Concept and K-1 Function; Due Dates and Extensions
Recent Changes to Form 1120-S and Associated K-1
• Schedules K-2 and K-3 Provide More Clarity for Shareholders on Determining Tax Liability With Respect to Items of International Tax Relevance
• Form 7203 Replaces Worksheet for Figuring a Shareholders Stock and Debt Basis
• New Items Added to Schedule K-1, for Corporations Number of Shares and Cash Contributions
1120-S Front Page and Schedule B
• Trade or Business Income and Expenses
• Situations When an S Corporation Pays Tax • Excess Net Passive Income or LIFO Recapture
• The Purpose of All Those Schedule B Questions
Schedule K and K-1s
• Separately Stated Items
• Correlation of Schedule K to the Shareholders K-1s
• Allocation Rules and Reporting
Schedule K-2 and K-3s
• Additional Insight on Foreign Sourced Income and Expenses
• Correlation of Schedule K to the Shareholders K-1s
• Sourcing Rules and Reporting
Schedules L, M-1, and M-2
• Schedule L – Balance Sheet per Books
• Schedule M-1 • Reconciliation of Income (Loss) per Books With Income (Loss) per Return
• Schedule M-2 • Analysis of Accumulated Adjustments Account, Shareholders Undistributed Taxable Income Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account
John T. Alfonsi, CPA/ABV/CFF, CFE, CVA, MST-Cendrowski Corporate Advisors
