Personal Tax Returns
This is where a self employed individual would file their business income and expenses.
What is Schedule C or Schedule C-EZ
This consist of accumulated losses and profits.
What is Retained Earnings
What is Current Ratio
This is a specific dollar amount that reduces the amount of income on which you are taxed.
What is Standard Deduction
This form is used to report taxable income from a business entity.
What is K-1.
This reports rental real estate, royalties, passthrough entities and estates & trusts.
What is Schedule E.
This accounting method allows a company to record revenue before receiving payment for goods and services.
What is accrual method.
These are valuables owned by the company.
What is Asset
These are eligible expenses that individual taxpayers can claim on federal income tax returns, which decrease their taxable income.
What is Itemized Deduction
This form shows Self Employment Tax Information.
What is Schedule SE Tax Form.
This is a type of tax record that summarizes return information and includes adjusted gross income (AGI).
What is a tax transcript.
This is Revenue minus COGS
What is Gross Profit
These are financial responsibilities of a company.
What is liability.
This is profit earned on the sale of an asset, which has increased in value over the holding period.
What is Capital Gain
This results from a business transaction that is rare and highly unusual.
What is extraordinary gain or extraordinary loss.
These are the 3 additional attachments where you can find contributions, distributions and shareholder loan information.
What are
S-Corp Stock and Debt Basis Worksheet AKA Shareholder Basis Worksheet
Federal Statements
Partner Basis Worksheet
S-Corps and Partnership are an example of this type of entity structure.
What is Passthrough
Another equity type: APIC
What is Additional Paid In Capital. Explain.
This is a personal guarantee on business debt in case of unknown future outcomes.
What is contingent debt. Discussion.
This is the equation for ENDING RETAINED EARNINGS
What is BEGINNING RETAINED EARNINGS +/- NET INCOME/LOSS + CONTRIBUTIONS -DISTRIBUTIONS.
This is reported on form 6252
What is installment sales income
This is a minimum amount that is guaranteed to be paid regardless of a business profitability.
What is a guaranteed payment
The purpose of this form is to provide the IRS additional information about a company's tax return calculations and differences between taxable and book income.
What is Schedule M-3.
This is when a distribution exceeds the owner's basis in their company. Distributions cannot exceed the basis and if done, they must be recognized as long term capital gains on PTRs or reclassify as a shareholder loan.
What is Excess Distribution
This indicates a lack of profitability, inefficient management, or the company choosing to pay significant distributions to shareholders when it made little financial sense to do so.
What is Negative Retained Earnings/Negative Equity.