Common errors made involving the following tax forms: • Form 1120-S
• Schedule K-1
• Schedule L
• Schedules M-1 and M-2
• Form 4562
• Form 4797
Learning Objectives
- When you complete this course, you will be able to: • 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.
Major Topics
Common errors made involving the following tax forms: • Form 1120-S
• Schedule K-1
• Schedule L
• Schedules M-1 and M-2
• Form 4562
• Form 4797
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