Table of Contents.

Description:

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 textbook shows you 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.

K-1s for 1120-S covers:

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

Product Details:

Level: Basic level

Author: NATP Staff

Publisher: NATP

Publication Date: 2019

Format: Print

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Corresponding CPE Courses:

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K-1s for 1120-S Self-Study Course