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: 1:00 PM ET End Time: 2:40 PM ET
Learning Objectives
* You will be able to recognize the S Corporation eligibility requirements.
* You will be able to explain the different sections of the Form 1120S front page and Schedule B.
* You will be able to discuss the difference between Schedule K, Schedule K1, Schedule K2, and Schedule K3.
* You will be able to identify when its appropriate to use Schedule L, M1, M3, andor M2.
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
Enrolled Agents ,CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
John T. Alfonsi, CPA/ABV/CFF, CFE, CVA, MST-Cendrowski Corporate Advisors
