Based on the guidance found in the PPC Tax Deskbook Series, this course focuses on the preparation and filing of 1120 and 1120S returns and utilizes a key issue approach in covering various C corporation and S corporation topics.

PREPARING CORPORATE INCOME TAX RETURNS OVERVIEW COURSE DESCRIPTION:
This interactive self-study course covers issues related to various C corporation and S corporation topics including tax years, accounting methods, capital gains and losses, passive activity loss, alternative minimum tax, and personal holding company tax.

PUBLICATION / REVISON DATE:
December 2009

PREREQUISITE / ADVANCE PREPARATION:
None

CPE CREDIT:
10 QAS Hours, 10 Registry Hours

CTEC CREDIT:
5 Federal CTEC Hours, 0 CTEC California Hours CTEC credit hours are half the number of CPE credit hours.

Check with the state board of accountancy in the state in which you are licensed to determine if they participate in the QAS program and allow QAS CPE credit hours. This course is based on one CPE credit for each 50 minutes of study time in accordance with standards issued by NASBA. Note that some states require 100-minute contact hours for self-study. You may also visit the NASBA website www.nasba.org for a listing of states that accept QAS hours.

Enrolled Agents: This CPE course is designed to enhance professional knowledge for Enrolled Agents. Gear Up is a qualified CPE Sponsor for Enrolled Agents as required by Circular 230 Section 10.6(g)(2)(ii). 

CFP® CREDIT:
5 CE Hours – CFP® Credit hours are half the number of CPE credit hours.

FIELD OF STUDY:
Taxes

EXPIRATION DATE:
Postmarked by December 31, 2010

KNOWLEDGE LEVEL:
Intermediate

LEARNING OBJECTIVES

Chapter 1: Incorporation
Completion of this chapter will enable you to:

• Apply the rules for transferring property in exchange for stock and determine taxable transfers.
• Identify and explain how organizational and start-up costs can be deducted and amortized.

• Identify personal service corporations (PSCs) and qualified personal service corporations (QPSCs), and apply the special tax limits and rates to which they are subject.

• Select an acceptable tax year, determine how clients can benefit from a fiscal year, and identify the procedures to successfully obtain automatic consent to change tax years.

• Identify the attributes, advantages, and disadvantages of the various accounting methods.
• Determine when inventory is used to compute taxable income.

• Explain the effects on the corporation and shareholders when distributions are made and identify transactions that may cause constructive dividends.

• Identify and apply the rules to the C corporations that are subject to the passive activity loss rules.

• Identify when a corporation is subject to alternative minimum tax and adjustments are required to compute the liability.

• Identify a personal holding company and explain what types of income are subject to the personal holding company tax.

• Identify a corporation that is subject to the accumulated earnings tax and determine whether a corporation?s accumulation of earnings meets the ?reasonable needs of business? test.

• Identify the various business credits and explain how to claim the various business credits.

• Compute estimated tax payments, identify timing differences between book and tax income, and classify Schedule M-1 items.

• Discuss other issues in preparing a corporate tax return, identify which groups are eligible to file consolidated returns, and the advantages and disadvantages of filing.

• Calculate a shareholder’s basis in stock and in direct loans to an S corporation.
• Determine decreases and increases in debt basis..

• Determine the taxability of distributions to S corporation shareholders.

• Identify items required to be separately stated.
• Determine proper allocation of income and loss among shareholders.

• Determine when the tax on excess net passive income applies, and when tax on built-in gains applies.