This course is designed for participants to easily make the transition from individual return preparation to business return preparation; this is a 3 day course totaling 24 hours – 8 hours per day. It provides staff training for tax areas affecting all business entities. Such business tax topics include the sale of assets used in any trade or business (Form 4797), depreciation (Form 4562), compensation issues, fringe benefits, and deductible trade or business deductions vs. nondeductible items (Schedule M1). It begins with a comprehensive study of C corporation business tax issues, and allows the participant to carry issues toward S corporation and partnership returns. This course also contains examples and cases to illustrate what preparers need to be aware of for 2015 business income tax returns.

Major Topics:

  • Complete coverage of any new legislation targeting corporations and partnerships and their respective owners
  • Entity choice? Overview and comparison of pros and cons for various forms of operating a business – Sole proprietor, C corporation, S corporation, partnerships, and LLC
  • Compensation issues, taxable employee benefits, below-market rate loans and company owned autos
  • Introduction to employee fringe benefits, pension and profit-sharing plans (SEPs, SIMPLEs, 401(k), MSAs, HSAs, and cafeteria plans)
  • The birth of a business, tax-free incorporation procedures under §351, and initial year elections, accounting periods, and methods available
  • The benefits of §1202 and §1244 stock sales and losses
  • Income and expense items receiving special treatment for tax purposes for all business entities
  • The importance of Schedule M1
  • Alternative minimum tax overview including depreciation adjustments
  • Personal service corporations – special rules
  • Multiple corporations – how to identify brother-sister corporations and apply the special rules
  • Accumulated earnings and personal holding company penalty taxes
  • Dividends, redemptions and liquidations
  • S corporations – in depth analysis from eligibility through operating rules and distributions
  • Intro to partnerships – from formation through operation to liquidation
  • Current developments are emphasized throughout this course

Learning Objectives:

  • Master in detail the preparation of Form 1120 and other potential issues such as alternative minimum tax, personal holding company, and accumulated earnings
  • Understand major issues in preparing partnership Form 1065 and S corporation Form 1120S
  • Understand compensation issues, fringe benefits, and certain business tax credits

Designed For: Experienced staff accountants (one to three years of experience) desiring an “in-depth” study of taxation
Level of Knowledge: Intermediate
Prerequisite: None
Advanced Preparation: None
Credits: 8