The course provides a comprehensive, hands-on, pencil pushing understanding of the preparation of both S corporation and partnership/LLC tax returns, along with the underlying laws, regulations, etc. The course uses the basic concepts underlying the two main types of business returns: 1120S and 1065 as building blocks for more complex concepts tax preparers should be aware of. The theoretical concepts get illustrated in comprehensive examples that incorporate the most up-to-date law changes and provisions.
Target Audience
All levels of staff and company controllers responsible for filing these forms
Course Objectives
Learn in detail about the preparation of Form 1120-S, Schedules M-1, K, and K-1
Learn in detail about the preparation of Form 1065, Schedules M-1, K, and K-1
Identify and handle commonly found S corporation and partnership tax issues
Subjects
Compare and contrast the tax consequences, opportunities, and pitfalls of operating a business as a partnership, LLC, or S corporation
Reporting requirements and filing exceptions for Schedules K-2 and K-3
Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations
Gain a comprehensive understanding of income tax laws for S corporations from eligibility and election to tax return preparation, stock basis, and loss limitation issues
Recognize and properly handle special pass-through items of income and expense
Accurately prepare S corporation returns and reconcile book income to taxable income
Accurately prepare partnership returns and reconcile book income to taxable income
What the transactional method entails and how to report partners’ capital accounts under this method
Properly handle the tax treatment of distributions to shareholders, partners, or members
Understand the special restrictions and sanctions for tax year-end selection
Review the basics of partnership and LLC formation and basis calculation
Self-employment tax or NOT, for each entity
Filling in K-1s correctly for S corporations, partnerships, and LLCs. Major changes in K-1 reporting on both partnership and S corporation forms and content
The most frequently used forms and schedules, including some form “oddities”
