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 are illustrated in comprehensive examples that incorporate the most up-to-date law changes and provisions.
Learning 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 Topics
- Updates related to HR 1, One Big Beautiful Bill Act – incorporated throughout the material
- 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”
- Income tax laws for S corporations ranging from eligibility and election to tax return preparation, stock basis, and loss limitation issues
- Recognizing and handling special pass-through items of income and expense
- Preparing S corporation returns and reconciling book income to taxable income
- Preparing partnership returns and reconciling book income to taxable income
- What the transactional method entails and how to report partners’ capital accounts under this method
- Properly handling the tax treatment of distributions to shareholders, partners, or members
- The special restrictions and sanctions for tax year-end selection
- 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”
