Overview:
This two-day training course provides a comprehensive understanding of the Federal income tax laws applicable to S corporations and their shareholders. The cornerstone of this course is the integration of the most recent tax laws and theories into real-world case scenarios and preparing and reviewing the IRS tax forms and schedules. Attendees will receive a comprehensive S corporation income tax reference manual that includes practice aids, real-world examples, new Federal income tax forms and programs, and Pat Garverick's Quick Reference Chart. This session is taught using a hands-on methodology. Real-world examples and cases demonstrate the complex income tax code and regulations to enhance the participant's learning experience. Each participant will receive a comprehensive S corporation income tax reference manual that includes numerous practice aids, real-world examples, new Federal income tax forms and schedules, and Pat Garverick's Quick Reference Chart.
Objectives:
• Understand the Federal income tax laws applicable to Partnerships/LLCs and their partners from formation to liquidation (i.e. theory) and apply this from a tax-form perspective (i.e. tax preparation) • Prepare a complete Form 1065 income tax return and related schedules with minimal review points
Major Topics:
• Extensive review of the partnership tax laws with an emphasis on any new legislative changes and Form 1065 (and related schedules) preparation issues • Overview of different forms of business entities, including the check-the-box regulations • Formation issues, including the mandatory allocation of the 704(c) pre-contribution gain or losses back to the contributing partner/member • Schedule K and K-1-preparation issues including separately and non-separately stated income and expense items (including the 20% qualified business income (QBI) deduction, 3.8% net investment income tax, business interest deduction limitations, fringe benefits and entertainment expenses) • Calculating the tax and 704(b) book capital accounts • Understand the substantial economic effect requirement to have special allocations to the partners/members • Allocation of recourse and non-recourse debt to the schedule K-1s • Deductibility of fringe benefits, including health insurance premiums • Guaranteed payments & self-employment tax issues and pitfalls • Overview of how partnership losses and deductions can be limited to calculating a partner/member's outside basis and at-risk rules • 754 election for optional basis adjustments triggering 743 (transfer of interests) and 734 (distributions) • Partnership liquidation and distribution tax ramifications at both the partnership and partner level
Major Topics:
• Extensive review of the partnership tax laws with an emphasis on any new legislative changes and Form 1065 (and related schedules) preparation issues • Overview of different forms of business entities, including the check-the-box regulations • Formation issues, including the mandatory allocation of the 704(c) pre-contribution gain or losses back to the contributing partner/member • Schedule K and K-1-preparation issues including separately and non-separately stated income and expense items (including the 20% qualified business income (QBI) deduction, 3.8% net investment income tax, business interest deduction limitations, fringe benefits and entertainment expenses) • Calculating the tax and 704(b) book capital accounts • Understand the substantial economic effect requirement to have special allocations to the partners/members • Allocation of recourse and non-recourse debt to the schedule K-1s • Deductibility of fringe benefits, including health insurance premiums • Guaranteed payments & self-employment tax issues and pitfalls • Overview of how partnership losses and deductions can be limited to calculating a partner/member's outside basis and at-risk rules • 754 election for optional basis adjustments triggering 743 (transfer of interests) and 734 (distributions) • Partnership liquidation and distribution tax ramifications at both the partnership and partner level
Designed For:
Tax return preparers, staff accountants, and paraprofessionals with little or no experience. Also, out of practice public accountants seeking a comprehensive basic S corporation income tax course.
Prerequisites:
Basic understanding of individual income taxation.