DESCRIPTION
In this course, participants will gain a comprehensive understanding of the Schedule K-1 for both S corporations and partnerships. The material covers the structure and differences between these two forms, with a focus on interpreting key sections and understanding their impact on tax filings. Additionally, the course will explore the unique aspects of K-1s, including the roles of limited versus general partners, managing versus non-managing members, as well as debt classifications and self-employment taxes. The course will also address shareholder loans in S corporations. Whether you’re a new tax professional or a seasoned expert, you’ll benefit from this session as we guide you through each section of Schedule K-1.
LEARNING OBJECTIVES
- Understand the structure and components of the Schedule K-1 for both S corporations and partnerships, including the differences between the two forms.
- Interpret the key sections of Schedule K-1, such as income (ordinary, rental, interest, dividend, etc.), deductions, credits, and other items affecting tax filings.
- Interpret the key sections of the partnership Schedule K-1, such as the effect of limited and general partners, managing and non-managing members, and related self-employment taxes.
- Discuss the impact of shareholder loans reported on an S corporation K-1, as well as the classifications of debt and their impact on basis.
