Objectives
- Identify common mistakes made on S corporation tax returns.
- Determine strategies to avoid making mistakes on S corporation tax returns. - 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 capital gains and losses are disclosed on Form 1120S.
- 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.
- 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 S corporation income taxation