Event Description

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: 1120-S 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, as they specifically apply to Forms 1065 and 1120-S. Very importantly, this course covers the concepts behind the newly enacted transactional method for partnerships, “behind-the-scenes” reconciliations and hands-on examples of presenting and reporting partners’ capital accounts per these provisions.

Designed For

All levels of staff and company controllers responsible for filing these forms

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

Major Subjects

Compare and contrast the tax consequences, opportunities, and pitfalls of operating a business as a partnership, LLC, or S corporation New Schedules K-2 and K-3 New Form 7203 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”

Prerequisites

None

Instructions

None