K-1s for 1120-S Self-Study

Summary

Individuals who are shareholders in an S corporation should receive a Schedule K-1 (Form 1120S), reporting their share of the corporation’s income, deductions, credits, etc. This course demonstrates how to report the basic information from this schedule on an individual’s tax return and provides an understanding of limitations that might apply before you can report certain items, such as losses and distributions.

Objectives

Upon completion of this course, you will be able to:

• Calculate the shareholder’s basis in the S corporation.
• Determine how much of a pass-through loss is deductible after applying the basis, at-risk, and passive activity limitations.
• Analyze the shareholder’s tax effects when receiving distributions from an S corporation.
• Correctly report various pass-through items from Schedule K-1 on Form 1040, including unique items, such as the sale of property when §179 was deducted.

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.