Comprehensive S Corporation Taxation Form 1120S 2024

Overview

This course comprehensively reviews the laws and regulations impacting S corporations. Get updated on the IRS’ compliance campaign that targets the improper reporting and calculations of stock basis and distributions. Learn to calculate and report critical S corporation tax items that generate most IRS audit adjustments correctly. Topics cover issues include S corporation qualifications, making and keeping the S election, reasonable compensation, taxation of distributions, the use of Qualified Subchapter S Subsidiaries, allocation of annual operating income and loss, tax reporting elections and learning the proper method to calculate the basis of stock and debt amounts.

Highlights

• Learn how to qualify and to make the S corporation election
• Determine how to calculate initial and annual stock and debt basis amounts and the three reasons why they are maintained
• Understand the four loss limitation rules applied on the shareholder's individual income tax return (i.e., basis, at-risk, passive, and excess business loss limitations)
• Understand the proper tax treatment and reporting of a distribution from the S corporation to a shareholder
• Determine how to calculate AAA and OAA account for an S corporation as well as the 3 potential taxes
• Determine the impact of health insurance, the net investment income tax, qualified business income tax deduction and unreasonable compensation issues on the reporting function of the S corporation

Prerequisites

General knowledge in individual and S corporation income taxation.

Designed For

Tax professionals, CPAs, accountants, and other financial professionals looking to expand and update their understanding and knowledge.

Objectives

• Identify how to form a qualified entity and elect S corporation status
• Determine how to properly allocate income and loss items to shareholders on their individual Schedule K-1
• Calculate an S corporations' initial basis in its assets as well as a shareholder's stock and debt basis in the S corporation
• Recognize three main reasons for calculating a shareholder's basis in an S corporation and how to make annual adjustments to a shareholders' stock and debt basis
• Calculate AAA and OAA account for an S corporation under various scenarios

Preparation

None

Notice

This course is offered by a 3rd party vendor. Login instructions will not be accessible in the My CPE Tracker section of the ISCPA website. Login instructions will be emailed directly to you by California Education Foundation (CalCPA).