Objectives
• Identify the accounts that affect the accumulated adjustments account.
• Identify which items go on page 1 of Form 1120-S and which go on Schedule K.
• Determine how capital gains and losses are disclosed on Form 1120-S.
• Determine how wash sales and installment sales are treated by S corporations.
• Determine the tax consequences when a newly converted S corporation sells appreciated property it acquired while operating as a C corporation.
• Determine the tax consequences associated with the distribution of appreciated property by an S corporation to a shareholder in redemption of stock.
Prerequisite
Basic knowledge of passthrough taxation