There are some similarities between S corporations and partnerships. For example, both are considered passthrough entities. There are also significant differences, such as the treatment of an S corporation shareholder who provides services for the S Corporation as an employee for employment tax purposes. For your last tax return assignment, I would like you to do the following:

Explain how the S Corporation\'s Schedule K is different than the Partnership\'s Schedule K

Explain how the S Corporation shareholder\'s Schedule K is different than the Partnership partner\'s Schedule K

Explain how the tax basis calculation for an S corporation shareholder\'s tax basis in stock is different than the tax basis calculation for a Partnership partner\'s tax basis in the partnership interest.

Explain how the employmentselfemployment taxes are different for S Corporation shareholders versus partners in a partnership.

Answer rating: 100% (QA)

Similarities and Differences in S Corporations and Partnerships Tax Treatment are as follows While both S corporations and partnerships are passthroug... View the full answer