The Form 1120-S tax return is filed each year by an S corporation to report its income, expenses, and other tax items. This sample Form 1120-S examines how to prepare a "final" return for the year the entity closed.
Form 4797 is filed to report the sale or disposition of assets used in a trade or business. This video tutorial covers a sample Form 4797 for an S corporation that distributed assets to its shareholders. The distribution of assets is treated as a deemed sale.
Form 1120-S is an annual tax return filed by S corporations. This examples covers a Form 1120-S filing for a landscaping company operating in Florida.
IRS Form 2553 is filed by a domestic eligible entity to elect to be an S corporation for federal tax purposes. If the election is filed late, the entity may qualify for late election relief.
The Form 7203 is completed by individual taxpayers to track their stock and debt basis in an S corporation. If a shareholder receives a distribution in excess of their basis, they generally must recognize capital gains.
The election under Section 1.1367-1(g) allows an S corporation shareholder to deduct nondeductible expenses under different ordering rules. This article covers the basics of the election and the implications.
Form 7203 tracks an S corporation shareholder's stock and debt basis in an S corporation. If the shareholder doesn't have sufficient basis, any losses passing through from the S corporation are generally suspended losses.
If an S corporation shareholder purchases or otherwise acquires S corporation stock at different intervals, it generally treats each occurrence as a separate "block" of stock. The stock basis in each block is tracked separately.
The Section 1.1368(g) election is available to S corporations that have ownership changes during the tax year. The election allows the S corporation to create separate tax years for allocating net income amongst the shareholders. This article covers the detailed rules and an example.
S corporations are pass through entities for federal tax purposes. If a shareholder is allocated losses which exceed their basis, the losses are generally suspended. This article covers an example with Form 7203.
