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.
Target Audience
Tax return preparers, staff accountants, and paraprofessionals with little or no experience. Also, out of practice public accountants seeking a comprehensive basic S corporation income tax course.
Course Objectives
Understand the Federal income tax laws applicable to Partnerships/LLCs and their partners from formation to liquidation (i.e. theory) and apply this from a tax-form perspective (i.e. tax preparation)
Prepare a complete Form 1065 income tax return and related schedules with minimal review points
Subjects
Extensive review of the partnership tax laws with an emphasis on any new legislative changes and Form 1065 (and related schedules) preparation issues
Overview of different forms of business entities, including the check-the-box regulations
Formation issues, including the mandatory allocation of the §704(c) pre-contribution gain or losses back to the contributing partner/member
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)
Calculating the tax and §704(b) book capital accounts
Understand the substantial economic effect requirement to have special allocations to the partners/members
Allocation of recourse and non-recourse debt to the schedule K-1s
Deductibility of fringe benefits, including health insurance premiums
Guaranteed payments & self-employment tax issues and pitfalls
Overview of how partnership losses and deductions can be limited to calculating a partner/member’s outside basis and at-risk rules
§754 election for optional basis adjustments triggering §743 (transfer of interests) and §734 (distributions)
Partnership liquidation and distribution tax ramifications at both the partnership and partner level
Prerequisites
Basic understanding of individual income taxation.
