Common errors made involving the following tax forms: • Form 1120-S
• Schedule K-1
• Schedules K-2 and K-3
• 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 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.
Major Topics
Common errors made involving the following tax forms: • Form 1120-S
• Schedule K-1
• Schedules K-2 and K-3
• Schedule L
• Schedules M-1 and M-2
• Form 4562
• Form 4797
