ACC 316 AIC U.S. Income Tax Return for an S Corporation

Anonymous

Question Description

TAX RETURN PREPARATION ASSIGNMEN

T

The requirements for this assignment are to prepare on 2018 Federal tax forms

a U. S. Corporation Income Tax Return (Form 1120)

a U. S. Income Tax Return for an S Corporation (Form 1120-S)

a U. S. Return of Partnership Income (Form 1065)

a U. S. Income Tax Return for Estates and Trusts (Form 1041)

Unformatted Attachment Preview

ACC 316 - CORPORATE INCOME TAX ACCOUNTING Spring 2019 TAX RETURN PREPARATION ASSIGNMENT The requirements for this assignment are to prepare on 2018 Federal tax forms • a U. S. Corporation Income Tax Return (Form 1120) • a U. S. Income Tax Return for an S Corporation (Form 1120-S) • a U. S. Return of Partnership Income (Form 1065) • a U. S. Income Tax Return for Estates and Trusts (Form 1041) The following data is to be used in preparing all of the tax returns. Taxpayer: Crest Consulting Services 1000 College Avenue Allentown, PA 18104 Estate of Sarah Crest 1000 College Avenue Allentown, PA 18104 Employer Identification Number: Owners/Beneficiaries: [for Forms 1120, 1120-S, 1065] [for Form 1041] 23-1234567 AGE AT 12/31 TIME ANNUAL SOCIAL OWNERSHIP/ SECURITY BENEFICIARY DEVOTED TO BUSINESS NUMBER INTEREST BUSINESS COMPENSATION John P. Doe 248 Elmhurst Drive Anywhere, PA 17001-1234 45 123-45-6789 50% 100% $100,000.00 Jane E. Doe 248 Elmhurst Drive Anywhere, PA 17001-1234 46 234-56-7891 30% 50% $75,000.00 Jill H. Doe 7689 Independence Avenue Freedom, VA 23001-1234 21 345-67-8910 20% 10% $25,000.00 The following data applies to the above taxpayers: The business's only asset transaction involved the purchase of additional office equipment at a cost of $10,000. The following cash distributions were made: March 1, 2018 September 13, 2018 $30,000 $20,000 The following estimated tax payments were made: Page 1 of 2 ACC 316 - CORPORATE INCOME TAX ACCOUNTING Spring 2019 TAX RETURN PREPARATION ASSIGNMENT April 12, 2018 June 13, 2018 September 13, 2018 December 13, 2018 $750 $750 $750 $750 Additional data include: * Sales * Sales returns * Purchases Gross Dividends Qualified Dividends Interest - City National Bank Interest - City of Chicago Bonds * Other wages * Advertising Repairs * Bad debts * Rents * Taxes Contributions * Depreciation Administrative Expenses $437,162 20,000 205,000 1,000 750 2,100 1,500 30,000 16,225 800 2,000 15,000 8,000 1,400 20,000 1,875 * Applies only to Forms 1120, 1120-S, 1065 Financial Balance Sheet: Cash Accounts Receivable Inventories Investments Depreciable assets Accumulated Depreciation Accounts Payable Contributed capital Retained earnings Page 2 of 2 BEGINNING OF YEAR $11,200 65,000 40,000 10,000 150,000 -20,000 30,000 150,000 76,200 END OF YEAR $5,700 53,062 45,000 10,000 160,000 -40,000 35,000 150,000 ? ...
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Tutor Answer

Tutorbetie
School: UT Austin

Attached.

Form

1120S

U.S. Income Tax Return for an S Corporation

OMB No. 1545-0123

Do not file this form unless the corporation has filed or is
attaching Form 2553 to elect to be an S corporation.
▶ Go to www.irs.gov/Form1120S for instructions and the latest information.

2018



Department of the Treasury
Internal Revenue Service

For calendar year 2018 or tax year beginning
A S election effective date
B Business activity code
number (see instructions)

, 2018, ending

January

18

D Employer identification number

TYPE Crest Consulting Services
Number, street, and room or suite no. If a P.O. box, see instructions.
OR
PRINT 1000 College Avenue

23-1234567
E Date incorporated

City or town, state or province, country, and ZIP or foreign postal code

C Check if Sch. M-3 attached

, 20

December

Name

Allentown, PA 18104

F Total assets (see instructions)

233,762

$

G Is the corporation electing to be an S corporation beginning with this tax year?
Yes
No
If “Yes,” attach Form 2553 if not already filed
H Check if: (1)
Final return (2)
Name change (3)
Address change (4)
Amended return (5)
S election termination or revocation
I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . . ▶
Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.

1a

Tax and Payments

Deductions (see instructions for limitations)

Income

b

c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22a
b
c
23a
b
c
d
e
24
25
26
27

1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

417,162
205,000
212,162

22c

0

212,162

30,000
800
2,000
15,000
11,000
3,600
40,000
16,225

3,275
98,900
90,262

23e
24
25
26
27

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
May the IRS discuss this return

Date

Signature of officer

Print/Type preparer’s name

Preparer’s signature



Paid
Preparer
Use Only



Sign
Here

Gross receipts or sales . . . . . . . . . . . . . . .
1a
$437,162
Returns and allowances . . . . . . . . . . . . . .
1b
20,000
Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . .
Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . .
Net gain (loss) from Form 4797, line 17 (attach Form 4797) . . . . . . . . . . . .
Other income (loss) (see instructions—attach statement) . . . . . . . . . . . . .
Total income (loss). Add lines 3 through 5 . . . . . . . . . . . . . . . . ▶
Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . . . . . . .
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . .
Bad debts
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . .
Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . .
Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . .
Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . .
Employee benefit programs . . . . . . . . . . . . . . . . . . . . . .
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . .
Total deductions. Add lines 7 through 19
. . . . . . . . . . . . . . . . ▶
Ordinary business income (loss). Subtract line 20 from line 6 . . . . . . . . . . .
Excess net passive income or LIFO recapture tax (see instructions) . 22a
0
Tax from Schedule D (Form 1120S) . . . . . . . . . . . 22b
0
Add lines 22a and 22b (see instructions for additional taxes) . . . . . . . . . . . .
2018 estimated tax payments and 2017 overpayment credited to 2018 23a
Tax deposited with Form 7004 . . . . . . . . . . . . 23b
Credit for federal tax paid on fuels (attach Form 4136) . . . . . 23c
Refundable credit from Form 8827, line 8c . . . . . . . . 23d
Add lines 23a through 23d . . . . . . . . . . . . . . . . . . . . . .
Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . ▶
Amount owed. If line 23e is smaller than the total of lines 22c and 24, enter amount owed . .
Overpayment. If line 23e is larger than the total of lines 22c and 24, enter amount overpaid . .
Enter amount from line 26: Credited to 2019 estimated tax ▶
Refunded ▶

with the preparer shown below
(see instructions)?

Title
Date

Check
if
self-employed

Firm’s name



Firm’s EIN

Firm’s address



Phone no.

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11510H

Yes

No

PTIN



Form 1120S (2018)

Form 1120S (2018)

Schedule B
1

Page

a
c
See the instructions and enter the:
a Business activity ▶
Check accounting method:

2

Cash
b
Accrual
Other (specify) ▶

Yes No

b Product or service ▶

3

At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a
nominee or similar person? If “Yes,” attach Schedule B-1, Information on Certain Shareholders of an S Corporation . .

4

At the end of the tax year, did the corporation:
Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding of any
foreign or domestic corporation? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v)
below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a

(i) Name of Corporation

b

b

6

(ii) Employer Identification
Number (if any)

(iii) Country of
Incorporation

(iv) Percentage of
Stock Owned

(v) If Percentage in (iv) is 100%, Enter
the Date (if any) a Qualified Subchapter
S Subsidiary Election Was Made

Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or
capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a
trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . .
(i) Name of Entity

5a

2

Other Information (see instructions)

(ii) Employer Identification
Number (if any)

(iii) Type of Entity

(iv) Country of
Organization

(v) Maximum Percentage Owned in
Profit, Loss, or Capital

At the end of the tax year, did the corporation have any outstanding shares of restricted stock? . . . . . . .
If “Yes,” complete lines (i) and (ii) below.
(i)
Total shares of restricted stock . . . . . . . . . ▶
(ii) Total shares of non-restricted stock . . . . . . . . ▶
At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments?
If “Yes,” complete lines (i) and (ii) below.
(i)
Total shares of stock outstanding at the end of the tax year ▶
(ii) Total shares of stock outstanding if all instruments were executed ▶

.

.

Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide
information on any reportable transaction?
. . . . . . . . . . . . . . . . . . . . . . . .
Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . ▶

7

If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount
Instruments.
8

If the corporation (a) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a
basis determined by reference to the basis of the asset (or the basis of any other property) in the hands of a C corporation and
(b) has net unrealized built-in gain in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in
gain reduced by net recognized built-in gain from prior years (see instructions) ▶ $

9

Did the corporation have an election under section 163(j) for any real property trade or business or any farming business
in effect during the tax year? See instructions . . . . . . . . . . . . . . . . . . . . . . . .

10

Does the corporation satisfy one of the following conditions and the corporation doesn’t own a pass-through entity with
current year, or prior year carryover, excess business interest expense? See instructions . . . . . . . . . .
a

The corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years
preceding the current tax year don’t exceed $25 million, and the corporation isn’t a tax shelter; or

b

The corporation only has business interest expense from (1) an electing real property trade or business, (2) an electing
farming business, or (3) certain utility businesses under section 163(j)(7).
If “No,” complete and attach Form 8990.
Does the corporation satisfy both of the following conditions?
The corporation’s total receipts (see instructions) for the tax year were less than $250,000 . . . . . . . . . .
The corporation’s total assets at the end of the tax year were less than $250,000
. . . . . . . . . . . .
If “Yes,” the corporation is not required to complete Schedules L and M-1.

11
a
b

Form 1120S (2018)

Form 1120S (2018)

Schedule B
12

13
14a
b
15

Income (Loss)
Deductions
Credits

Yes

During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had
terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . .
If “Yes,” enter the amount of principal reduction . . . . . . . . ▶ $
During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions
Did the corporation make any payments in 2018 that would require it to file Form(s) 1099? . . . . . . . . .
If “Yes,” did the corporation file or will it file required Forms 1099? . . . . . . . . . . . . . . . .
Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund? . . . . . . . . . . .
If “Yes,” enter the amount from Form 8996, line 13 . . . . . . . ▶ $

Schedule K

Foreign Transactions

Page

Other Information (see instructions) (continued)

1
2
3a
b
c
4
5

Shareholders’ Pro Rata Share Items

Ordinary business income (loss) (page 1, line 21) . . . . . . . . . . . . . .
Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . .
Other gross rental income (loss) . . . . . . . . . .
3a
Expenses from other rental activities (attach statement)
. .
3b
Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . .
Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . .
b Qualified dividends . . . . . . . . . .
5b
750
6
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) . . . . . . . .
8a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) . . . . . . . .
b Collectibles (28%) gain (loss) . . . . . . . . . . .
8b
c Unrecaptured section 1250 gain (attach statement) . . . .
8c
9
Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . .
10
Other income (loss) (see instructions) . . Type ▶
11
Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . .
12a Charitable contributions . . . . . . . . . . . . . . . . . . . . .
b Investment interest expense . . . . . . . . . . . . . . . . . . . .
c Section 59(e)(2) expenditures (1) Type ▶
(2) Amount ▶
d Other deductions (see instructions) . . .
Type ▶
13a Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . .
b Low-income housing credit (other) . . . . . . . . . . . . . . . . . .
c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) .
d Other rental real estate credits (see instructions) Type ▶
e Other rental credits (see instructions) . . . Type ▶
f Biofuel producer credit (attach Form 6478)
. . . . . . . . . . . . . . .
g Other credits (see instructions) . . . . . Type ▶
14a Name of country or U.S. possession ▶
b Gross income from all sources . . . . . . . . . . . . . . . . . . .
c Gross income sourced at shareholder level . . . . . . . . . . . . . . .
Foreign gross income sourced at corporate level
d Section 951A category . . . . . . . . . . . . . . . . . . . . . .
e Foreign branch category . . . . . . . . . . . . . . . . . . . . .
f Passive category
. . . . . . . . . . . . . . . . . . . . . . .
g General category
. . . . . . . . . . . . . . . . . . . . . . .
h Other (attach statement) . . . . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at shareholder level
i Interest expense . . . . . . . . . . . . . . . . . . . . . . . .
j Other . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at corporate level to foreign source income
k Section 951A category . . . . . . . . . . . . . . . . . . . . . .
l Foreign branch category . . . . . . . . . . . . . . . . . . . . .
m Passive category
. . . . . . . . . . . . . . . . . . . . . . .
n General category
. . . . . . . . . . . . . . . . . . . . . . .
o Other (attach statement) . . . . . . . . . . . . . . . . . . . . .
Other information
p Total foreign taxes (check one): ▶
Paid
Accrued . . . . . . . . . .
q Reduction in taxes available for credit (attach statement) . . . . . . . . . . .
r Other foreign tax information (attach statement)

3

No

the
.
.
.
.
.

Total amount

1
2

3c
4
5a

1,000

6
7
8a

9
10
11
12a
12b
12c(2)

12d
13a
13b
13c
13d
13e
13f
13g
14b
14c
14d
14e
14f
14g
14h
14i
14j
14k
14l
14m
14n
14o
14p
14q
Form 1120S (2018)

Form 1120S (2018)

ReconOther
ciliation Information

Items Affecting
Shareholder
Basis

Alternative
Minimum Tax
(AMT) Items

Schedule K

Post-1986 depreciation adjustment . . . . . . . . . .
Adjusted gain or loss . . . . . . . . . . . . . .
Depletion (other than oil and gas)
. . . . . . . . . .
Oil, gas, and geothermal properties—gross income . . . . .
Oil, gas, and geothermal properties—deductions . . . . . .
Other AMT items (attach statement) . . . . . . . . . .
Tax-exempt interest income . . . . . . . . . . . .
Other tax-exempt income . . . . . . . . . . . . .
Nondeductible expenses . . . . . . . . . . . . .
Distributions (attach statement if required) (see instructions) . .
Repayment of loans from shareholders . . . . . . . . .
Investment income . . . . . . . . . . . . . . .
Investment expenses . . . . . . . . . . . . . .
Dividend distributions paid from accumulated earnings and profits
Other items and amounts (attach statement)

18

Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right
column. From the re...

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