Reviewing S-Corp Returns

Overview

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Sharpen your skills!

Fine-tune your reviewing abilities by examining case studies of issues that may warrant additional information from the client and areas of tax law where proper treatment requires additional analysis and information. Multiple issues will be discussed, including income, deductions, K-1 reporting, and other complex tax law issues.

Highlights

Key Topics

Common errors made involving the following tax forms:

• Form 1120S
• Schedule K-1
• Schedule L
• Schedules M-1 and M-2
• Form 4562
• Form 4797

Prerequisites

Basic knowledge of S corporation taxation

Designed For

Who Will Benefit

CPA managers and partners

Objectives

Learning Outcomes

• Determine how transfers to corporations in exchange for stock can be nontaxable under IRC Section 351.
• Calculate the balance in an accumulated adjustments account and enter that calculation on Form 1120S, Schedule M-2.
• Determine how distributions to an S corporation shareholder are taxed.
• Determine how capital gains and losses are disclosed on Form 1120S.
• Determine how installment sales are disclosed by S corporations.
• Calculate the excess net passive income tax for an S corporation.
• Identify and properly report cost recovery deductions on Form 1120S and the associated Schedule K-1s issued to shareholders.
• Determine the tax consequences when a newly converted S corporation sells appreciated property it acquired while operating as a C corporation.
• Calculate and properly report the tax consequences associated with the distribution of appreciated property by an S corporation to a shareholder in redemption of stock.
• Accurately determine how to allocate S corporation pass-through items when the shareholders' interests in the corporation change during the tax year.