New York S Corporation Tax Preparation
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S Corporation Tax Preparation
Managing an S corporation tax return requires more than simply transferring numbers from your books to Form 1120-S. We provide professional S Corporation tax preparation in New York, helping business owners properly report federal S corporation income, shareholder activity, New York State requirements, and applicable New York City taxes.
We review your business records, shareholder accounts, deductions, fixed assets, and tax elections to help prepare accurate, tax-ready filings.
Federal Form 1120-S & Schedule K-1
We prepare Form 1120-S, U.S. Income Tax Return for an S Corporation, including the reporting of business income, deductions, credits, and separately stated items. We also prepare Schedule K-1 information for shareholders so each owner receives the information needed for their individual tax return.
New York S Corporation Tax Filing
A federal S corporation does not automatically receive New York S corporation treatment. Eligible corporations generally need to make the appropriate New York election before filing as a New York S corporation. New York S corporations generally file Form CT-3-S, along with the applicable shareholder information schedule.
We consider your New York filing status, shareholder information, apportionment, and applicable New York State corporation tax requirements when preparing your return.
Shareholder Basis & Distributions
Proper shareholder basis tracking is an important part of S corporation tax preparation. We review shareholder basis, contributions, distributions, and pass-through items to help ensure shareholder activity is properly reflected in the tax records.
We also review:
- Shareholder contributions
- Shareholder distributions
- Shareholder loans
- Basis adjustments
- Ownership changes
- Pass-through income and deductions
Reasonable Compensation
S corporation owners who work in the business need appropriate consideration of reasonable compensation. We review shareholder wages and distributions in the context of the company’s operations and tax reporting requirements rather than treating every payment to an owner the same way.
Shareholder Loans
Loans between an S corporation and its shareholders require careful documentation and accounting. We review shareholder loans, repayments, loan balances, and related transactions to help ensure they are properly reflected in the company’s books and tax return.
Fixed Assets & Depreciation
We review business purchases and fixed assets to determine the appropriate tax treatment. This includes reviewing depreciation, asset classifications, dispositions, and applicable depreciation methods and elections when preparing the S corporation return.
New York State PTET
Eligible New York S corporations may elect into the New York State Pass-Through Entity Tax (PTET). The election can allow eligible shareholders to receive a corresponding New York State PTET credit. The election is made annually and has specific eligibility and timing requirements.
We consider whether PTET applies to your S corporation and incorporate the applicable PTET reporting into the overall tax preparation process.
NYC PTET
For eligible New York City resident S corporations, the NYC PTET may also be available. NYC PTET is an optional tax for eligible city resident S corporations and can provide an NYC PTET credit to qualifying shareholders.
New York City S Corporation Taxation
New York City does not simply follow the federal or New York State S corporation election. NYC does not have its own S corporation election and does not recognize the New York State S corporation election. Federal S corporations doing business, employing capital, owning or leasing property, or maintaining an office in NYC may be subject to the New York City General Corporation Tax (GCT).
This means an S corporation can have federal S corporation treatment and New York State S corporation treatment while still having a separate NYC corporate tax filing obligation.
Understanding this distinction is especially important for S corporations operating in New York City.
Multi-State S Corporation Tax Issues
If your S corporation operates in multiple states, has employees or property outside New York, or generates revenue from customers in different jurisdictions, additional state filing and income apportionment issues may arise.
We review applicable state nexus and apportionment considerations, shareholder residency, business activity, and state filing requirements to help identify the returns your S corporation may need to file.
Complete S Corporation Tax Preparation
Our New York S Corporation tax preparation services bring together federal, New York State, and applicable New York City requirements. From Form 1120-S and Schedule K-1 to shareholder basis, compensation, distributions, depreciation, PTET, NYC taxation, and multi-state issues, we help keep your S corporation tax filings accurate and organized.