Unlock S Corp Tax Strategies
This tool transforms complex Form 1120-S rules into clear, actionable insights. Learn to classify items correctly, see their direct impact on shareholder basis, and discover key strategies to maximize your tax benefits.
Step 1: The Item Classifier
Proper classification is the foundation of an accurate S Corp return. Click an item below to see where it belongs and understand why it impacts shareholders differently.
Select a transaction to classify:
① Ordinary Income/Loss
Affects Qualified Business Income (QBI) and is netted on Form 1120-S, page 1.
② Separately Stated
Flows through to Schedule K-1; character is preserved for shareholder-level limits.
③ Nondeductible
Provides no tax deduction but critically reduces shareholder basis.
Step 2: The Basis Impact Visualizer
Shareholder basis is the key to tax-free distributions and deducting losses. See how different items impact your basis in real-time and learn to avoid the common "Basis Trap."
Step 3: Strategic Tax Benefit Explorer
Now that you understand the rules, learn how to use them to your advantage. Explore these key strategies to defer taxes and maximize shareholder wealth.