2 Credits: Taxes
This program uses a two year case study to illustrate the effects of losses in excess of shareholder’s stock and debt basis in the first year (2020) and income in the second year (2021). The case study involves a service corporation with a single shareholder and few separately stated items. It gives hands-on practice filing Form 2553, Form 1120-S with Schedule K-1, Schedule K-2 and Schedule K-3. These new forms are required of many S corporation is for the 2021 taxable year and will likely be required for all S corporations for the 2022 returns. It also demonstrates completion of shareholder Form 7203, required for most S corporation shareholders for 2021 tax returns. Finally, it traces items reported on the shareholder’s Schedule K-1 to Form 1040 and its schedules.
This course is designed for tax preparers who have little or no experience with S corporations. It provides useful information to persons preparing Form 1120S for S corporations. This program is also informative for tax professionals who prepare Form 1040 for persons who own shares in S corporations.
Upon completion of this course, participants will be able to:
- Identify the forms needed to elect S corporation status and file returns as S corporations;
- Prepare Form 2553, which is the only acceptable method to elect S corporation status;
- Apply current rules to Form 1120-S, its attached schedules and the information the corporation must provide the shareholders, including Schedule K-2 and Schedule K-3;
- Determine stock and debt basis limitations applicable to shareholders;
- Calculate the shareholder basis information on Form 7203, including income, loses and carryovers; and
- Understand the effects of loss carryovers on shareholders in a subsequent income year.
July 24, 2023
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02359-23-O
IRS Federal Tax Law Credits: 2
CTEC Course Number: 2071-CE-1924
CTEC Federal Tax Law Credits: 2
CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.
CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at www.ctec.org.
Meet The Experts
Robert “Bob” W. Jamison, CPA, Ph.D., is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His principal area of specialization is S Corporations. He is the sole author of S Corporation Taxation, and co-author of Multistate Tax Guide to Pass-Through Entities, both of which are published annually by CCH, a Wolters Kluwer business. He is the author of the 2022 edition of Essentials of Federal Income Taxation, published annually by CCH, a Wolters Kluwer business. Bob is a well-known author and speaker on S Corporations. He is curator of Wolters Kluwer Answerconnect Topic “S Corporations” and subtopics …