S Corporation Preparation Webinar

•  Identify how to form an S corp and calculate its initial inside basis in the assets and shareholder's stock and debt basis.
• Show how to prepare a basic S corp (Form 1120S) Schedule K and Schedule M-2, including the reporting of cash and non-cash distributions.
• Determine how Schedule K items get allocated to the shareholders on their individual Schedule K-1.
• Recognize three main reasons for calculating a shareholder's basis in a S corp.
• Calculate a shareholder's stock and debt and determine if losses and deductions are limited on their individual income tax return.

•  Emphasize any new legislative changes affecting S corporation and shareholders
• Review the Form 1120S and discuss how items get reported on the S corporation tax return (i.e., page 1 versus Schedule K) and flow-thru to the shareholders on their schedule K-1
• Analyze the Schedule K-1 line-by-line and discuss where the items get reported on the individual’s Federal income tax return and how the items affect the shareholder’s stock and debt basis
• Look at what relevant information related to the 3.8% net investment income tax needs to be reported to the shareholders
• S corporation formation issues under IRC §351
• Tax ramifications and reporting of distributions at the S corporation level including when the S corporation has prior C corporation earnings and profits (E&P)
• Preparation of the Schedule M-2 and the ordering rules for distributions out of the AAA, OAA, PTI and E&P accounts