1120-S U. S. Income Tax Return for an S Corporation

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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

, 2018, ending

, 20
D Employer identification number

Name

DRAFT AS OF
October 4, 2018
DO NOT FILE

B Business activity code
number (see instructions)

TYPE
OR
PRINT

Number, street, and room or suite no. If a P.O. box, see instructions.

E Date incorporated

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

F Total assets (see instructions)

C Check if Sch. M-3 attached

$

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

22c

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

1a
Gross receipts or sales . . . . . . . . . . . . . . .
Returns and allowances . . . . . . . . . . . . . .
1b
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
Tax from Schedule D (Form 1120S) . . . . . . . . . . . 22b
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 ▶

DRAFT AS OF
October 4, 2018
DO NOT FILE

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 . . . . . . . ▶ $

3

No

the
.
.
.
.
.

DRAFT AS OF
October 4, 2018
DO NOT FILE

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
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)

Total amount

1
2

3c
4
5a
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 result, subtract the sum of the amounts on lines 11 through 12d and 14p

16
17
18
19
20
21
22
23
24
25
26
27

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15a
15b
15c
15d
15e
15f
16a
16b
16c
16d
16e
17a
17b
17c

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DRAFT AS OF
October 4, 2018
DO NOT FILE
Balance Sheets per Books

Assets
Cash . . . . . . . . . . . . . .
Trade notes and accounts receivable . . . .
Less allowance for bad debts . . . . . . .
Inventories
. . . . . . . . . . . .
U.S. government obligations . . . . . . .
Tax-exempt securities (see instructions) . . .
Other current assets (attach statement) . . . .
Loans to shareholders . . . . . . . . .
Mortgage and real estate loans . . . . . .
Other investments (attach statement) . . . .
Buildings and other depreciable assets . . . .
Less accumulated depreciation . . . . . .
Depletable assets . . . . . . . . . .
Less accumulated depletion . . . . . . .
Land (net of any amortization) . . . . . . .
Intangible assets (amortizable only) . . . . .
Less accumulated amortization . . . . . .
Other assets (attach statement) . . . . . .
Total assets . . . . . . . . . . . .
Liabilities and Shareholders’ Equity
Accounts payable . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach statement) . .
Loans from shareholders . . . . . . .
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement) . . . .
Capital stock . . . . . . . . . . .
Additional paid-in capital . . . . . . .
Retained earnings . . . . . . . . .
Adjustments to shareholders’ equity (attach statement)
Less cost of treasury stock . . . . . .
Total liabilities and shareholders’ equity
. .

4

Total amount

15a
b
c
d
e
f
16a
b
c
d
e
17a
b
c
d

Schedule L
1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15

Page

Shareholders’ Pro Rata Share Items (continued)

Beginning of tax year

(a)

18

End of tax year

(b)

(c)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

(d)

)
Form 1120S (2018)

Form 1120S (2018)

Schedule M-1

Page

5

Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Note: The corporation may be required to file Schedule M-3 (see instructions)

1

Net income (loss) per books

2

Income included on Schedule K, lines 1, 2,
3c, 4, 5a, 6, 7, 8a, 9, and 10, not recorded
on books this year (itemize)

3

.

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5

Income recorded on books this year
not included on Schedule K, lines 1
through 10 (itemize):
a Tax-exempt interest $

DRAFT AS OF
October 4, 2018
DO NOT FILE
6

a

Expenses recorded on books this year not
included on Schedule K, lines 1 through 12
and 14p (itemize):
Depreciation $

b

Travel and entertainment $

7
8

4

Add lines 1 through 3

Schedule M-2

.

.

.

.

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.

Deductions included on Schedule K,
lines 1 through 12 and 14p, not charged
against book income this year (itemize):
a Depreciation $
Add lines 5 and 6 . . . . . . .
Income (loss) (Schedule K, line 18). Line
4 less line 7
. . . . . . . .

.

Analysis of Accumulated Adjustments Account, Shareholders’ Undistributed Taxable Income
Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account
(see instructions)
(b) Shareholders’
undistributed taxable
income previously taxed

(a) Accumulated
adjustments account

1
2
3
4
5
6
7

Balance at beginning of tax year . .
Ordinary income from page 1, line 21
Other additions . . . . . . .
Loss from page 1, line 21 . . . .
Other reductions . . . . . . .
Combine lines 1 through 5 . . . .
Distributions . . . . . . . .

8

Balance at end of tax year. Subtract line 7 from
line 6 . . . . . . . . . . . . . .

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)

(c) Accumulated
earnings and profits

(d) Other adjustments
account

(

)

Form 1120S (2018)