Preparing Tax Return for an S-Corp

[POCAHONTAS]

Hi
I am a fairly new Tax Preparer and have been approached to do a Return for an S-Corp, so does anyone know where I can get the info which would guide me step by step to prepare the return. I have prepared individuals and schedule C before, but have never prepared an S-Corp return. It is for a Truck Driver. Thank you so much for any help.

[veritas]

Purchase

The Deluxe Edition of The TaxBook.

[Bees Knees]

Tab 19 in the Deluxe Book has a comprehensive example of how to prepare an S corporation return. You can follow how the numbers on the income statement and balance sheet in the example flow to the 1120S and the K-1.

[Snaggletooth]

You can't go Wrong

by purchasing the Deluxe Edition of the Tax Book. If you get engrossed in heavy problems with S corps, you may also consider the Small Business version at some point in your development.

THE FUNDAMENTAL PRINCIPLE OF S CORPORATION TAXATION
Remember that in general, S corporations are not taxed at all, but the income passes through to the shareholders so the shareholders are taxed instead. And the income passes through in the same character as it is earned by the S corp, e.g. interest, capital gains, ordinary income, etc. earned by the S corp becomes the same KIND of income for the shareholders.

Of course it is not as simple as all that. But that portrays the major thrust of the taxation, and about as far as anyone on this forum will tell you without getting bogged down in time-consuming details.

If, after having begun the return, you run into specific questions that can be answered quickly, I'm sure many of us on this board will be happy to help. All of us were "rookies" at one time, and I appreciate those who helped me several years ago.

Please don't shy away from accepting this client. If you are new, and plan to continue preparing taxes, it will be necessary for you to move to the "next level". Taking on corporations is a good way to get there.

One last suggestion: if you need line-by-line instructions, try the IRS instructions.

[Davc]

Keep in mind that the Amtrak Law does not apply to corps. You need to check the state filing requirements for every state he's been in during the year. Assuming a profit, you also need to check the requirements for individual filing in each state. The Amtrak law does apply to his wages from driving.

[Uncle Sam]

S Corp Taxation Guide

Here's a site for S Corporation tax information that might be helpful to you:

http://www.1120saccountant.com/form-2553.htm

[ChEAr$]

Amtrak law

Keep in mind that the Amtrak Law does not apply to corps. You need to check the state filing requirements for every state he's been in during the year. Assuming a profit, you also need to check the requirements for individual filing in each state. The Amtrak law does apply to his wages from driving.

By this I suppose you mean the principal that transportation workers are taxed only to their resident state?

I can see why it might not apply to net profit of the S corporation, but not to his salary?

Well, his salary, IF any. (grin

[POCAHONTAS]

Thank you

You guys are great, thank you so much for all your help I wish I had joined a couple of years ago. Thanks again

[Davc]

By this I suppose you mean the principal that transportation workers are taxed only to their resident state?

I can see why it might not apply to net profit of the S corporation, but not to his salary?

Well, his salary, IF any. (grin

Correct. It doesn't apply to the Corp but it applies to his wages, if any, for driving.