Business Income Tax Returns
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In this 1st course of the Federal Tax Return Analysis Skill Series, participants will examine differences in business structures and their impact on tax returns, review the purpose of business tax returns, explore key schedules, and identify net taxable income, federal taxes due, and owner compensation methods.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
In the first webinar session, participants examine the major differences between Subchapter C corporations, Subchapter S corporations, partnerships and limited liability companies, and sole proprietorships and how those differences flow through to the associated business income tax returns. They review the purpose of business income tax returns by type of business organization and explore the role of Schedule K, Schedule K-1, Schedule L, and Schedule M-1. In addition, participants identify the schedule and line number that capture net taxable income on each set of business income tax returns, as well as identify, if available, the amount of federal income tax due and payable on taxable business income. They explore the manner in which income tax regulations determine the channels and mechanisms for providing compensation to business owners, and they identify the role of dividends, distributions, and withdrawals in assessing borrower risk.
Who Should Attend
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- Credit Management
- Commercial Credit Administration
- Commercial Loan Administration
- Commercial Loan Portfolio Management
- C & I Lending
- Corporate Lending
- Loan Review
- Special Assets
- Internal Audit
- Non-Profit and Municipality Lending
- Health Care Provider Lending
- Specialized Lending
- Credit Analysis
Prerequisites
Familiarity with accrual financial statements and the use of ratios and cash flow statements in assessing borrower risk.
Objectives
By the end of the webinar session, participants will be able to:
- Identify the differences between business organizations and how the principal differences are reflected in business income tax returns for each business organization.
- Identify the sole purpose of business income tax returns for Subchapter C corporations, Subchapter S corporations, partnerships and limited liability companies, and sole proprietorships and how that purpose may differ by business organization.
- Identify the role and information content of Schedule K, Schedule K-1, Schedule L, and Schedule M-1, as applicable, for Subchapter C corporations, Subchapter S corporations, and partnerships and limited liability companies.
- Identify the schedule and line number in each set of business income tax returns that reports the total taxable business income generated by the business organization and, if applicable, the schedule and line number that reports the amount of federal income tax due and payable by the organization or by its owners or partners.
- Identify how income tax provisions determine the channels and mechanisms for providing compensation to business owners by type of business organization.
- Identify the role of dividends, distributions, and withdrawals and the importance of their proper classification as operating events or financing events in assessing borrower risk.
Materials(access provided with registration)
- Terms and Concepts - Business Organizations
- Credit Refresher on Business Income Tax Returns
- Credit Refresher on Guaranteed Payments to Partners
- Form 1120: U.S. Corporation Income Tax Return
- Form 1120S: U.S. Income Tax Return for an S Corporation
- Form 1065: U.S. Return of Partnership Income
- Schedule C: Profit or Loss From Business
- Exercise for the Session 1 Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 1 of 8 in the Federal Tax Return Analysis Skill Series
Business Income Tax Returns
The Section 179 Deduction
Understanding Schedules K-1
Personal Income Tax Returns and Cash Flow
Schedule M-1 and the Accrual Income Statement
Business Income Tax Returns and Ratio Analysis
Business Income Tax Returns and Cash Flow Analysis
Cash Based Income Tax Returns
