Corporate Track
Mastering Form 1120for Preparers.
13 chapters. Every line of Form 1120 walked in plain English — plus Schedules L, M-1, M-2, §179 and bonus depreciation, DRD, PHC and Accumulated Earnings traps, and a realistic practice return per chapter. Ends with a 20-question exam and a printable certificate.
Free preview
Read Chapters 1–3 and try 3 real practice returns — no login, no card required.
Chapters
Chapter 1
FREE PREVIEWThe C-Corporation Foundation & When to File Form 1120
Entity types, when Form 1120 is required, filing deadlines, extensions, and the mechanics that trip up new corporate preparers.
22 min · Foundational
Chapter 2
FREE PREVIEWForm 1120 Page 1: The Income Section, Line by Line
Every income line on Page 1 of Form 1120 — gross receipts, COGS, dividends, interest, gains, and where each source of corporate income lives.
26 min · Return Mechanics
Chapter 3
FREE PREVIEWCost of Goods Sold — Form 1125-A & Inventory
Inventory methods, §263A uniform capitalization, the small-taxpayer exception, and the mechanics of Form 1125-A.
24 min · Return Mechanics
Chapter 4
Deductions Part 1 — Compensation, Salaries, and Employee Costs
Officer compensation (Form 1125-E), salaries, benefits, and the reasonable-compensation trap for the working shareholder.
22 min · Deductions
Chapter 5
Deductions Part 2 — Depreciation, §179, Bonus, and Form 4562
Modern accelerated depreciation rules for C-corps: §179 elections, bonus depreciation phaseout, listed-property rules, and Form 4562.
24 min · Deductions
Chapter 6
Deductions Part 3 — Advertising, Meals, Interest, and 'Other Deductions'
The bottom half of Page 1 deductions — advertising, meals & entertainment, interest expense (§163(j)), and the massive 'other deductions' catchall on Line 26.
21 min · Deductions
Chapter 7
Schedule C — Dividends & the Dividends-Received Deduction (DRD)
How C-corps report dividends from other corporations and get partial or full deductions to prevent triple taxation — the 50%, 65%, and 100% DRD tiers.
20 min · Special Schedules
Chapter 8
Schedule J — Tax Computation, Credits, and Estimated Tax
The flat 21% rate, Personal Service Corporation rules, credits available to C-corps, and the estimated tax payment rules.
18 min · Special Schedules
Chapter 9
Schedule K — Other Information the IRS Wants to Know
Ownership disclosures, accounting method, business activity code, foreign accounts, and the questions on Schedule K that trigger audit interest.
18 min · Special Schedules
Chapter 10
Schedule L — Balance Sheets per Books
The corporate balance sheet on the tax return — what goes where, how to tie it to the trial balance, and when the $250,000 exception saves you time.
18 min · Special Schedules
Chapter 11
Schedule M-1 & M-3 — Reconciling Book Income to Tax Income
Why book income ≠ tax income, and how M-1 (or M-3 for large corps) bridges the gap. Common M-1 items and where to find them.
20 min · Special Schedules
Chapter 12
Schedule M-2 — Analysis of Retained Earnings
How retained earnings roll forward, distinguishing dividends from returns of capital, and tying M-2 to Schedule L, Line 25.
15 min · Special Schedules
Chapter 13
Special Situations & Common Preparer Traps
First-year startup elections, NOL carryforwards, Personal Holding Company tax, Accumulated Earnings Tax, Form 5472, and reasonable compensation for the working shareholder.
24 min · Advanced
Practice Returns — On the Actual Form
Every practice return uses real Form 1120 line numbers (Line 1c, Line 11, Line 29b, Schedule L Line 15/25, M-1 Line 10, M-2 Line 8…) so you learn exactly how to input numbers into tax software or on paper.
Practice · Chapter 1
FREE PREVIEWCh 1 — First-Year Consulting Corp (Simple)
Meridian Consulting Corp was formed 3/1/2025, calendar year, single owner (Jenna Ross, 100%). No operations in 2024. First year of business. Ross incurred $6,200 in incorporation legal fees before 3/1/2025 and $18,000 in market research and pre-opening expenses. The corp began operations 4/15/2025.
Practice · Chapter 2
FREE PREVIEWCh 2 — Product Corp Total Income (Line 11)
Skinner Distribution Corp had $840,000 in gross product sales, $12,000 in customer returns, $345,000 in COGS from Form 1125-A, $15,000 in dividends from a portfolio of stocks (under 20% ownership), $3,400 in bank interest, and $18,000 in gain from selling a delivery truck (from Form 4797). Compute Line 11 Total Income.
Practice · Chapter 3
FREE PREVIEWCh 3 — Retail COGS (Form 1125-A)
Retail Corp: Beginning inventory $85,000, Purchases $340,000, Freight-in $12,000, Ending inventory (physical count) $92,000. No §263A (small biz, under $30M). Compute COGS.
Practice · Chapter 4
Ch 4 — Officer Compensation & Wages
Skinner Corp paid Officer Skinner $180,000 W-2 wages. Non-officer employees received $412,000 in wages. Corp claims $6,000 WOTC on Form 5884. State income tax paid = $22,000. Federal payroll taxes (employer FICA + FUTA) = $46,500. Property tax on office = $8,400.
Practice · Chapter 5
Ch 5 — §179 + Bonus + MACRS
Manufacturing Corp bought a $340,000 CNC machine (7-year property) and a $65,000 SUV (>6,000 lb GVWR, 100% business) in 2025. Elects §179 on the SUV up to the SUV limit ($31,300 for 2025) plus §179 on the machine to the full $1.25M cap. Bonus depreciation is 40% for 2025 (applies to remainder).
Practice · Chapter 6
Ch 6 — Meals, Interest, Other Deductions
Full-Service Corp: $32,000 gross business meals, $8,000 employee holiday parties (100% deductible), $85,000 gross interest expense, $2,100 interest income. Corp is under the $30M small-biz exception. Rent $48,000, Utilities $9,400, Software subscriptions $14,000.
Practice · Chapter 7
Ch 7 — DRD Waterfall
Holding Corp received dividends from three companies: $22,000 from Microsoft (8% owner), $50,000 from a 30%-owned subsidiary, $80,000 from an 85%-owned affiliated subsidiary. No debt financing.
Practice · Chapter 8
Ch 8 — Tax Computation (Schedule J)
Growth Corp has $520,000 taxable income (Line 30). Claims $18,000 WOTC and $12,000 R&D credit from Form 3800. Paid $85,000 in Q1-Q4 estimated taxes.
Practice · Chapter 9
Ch 9 — Schedule K Ownership Disclosure
Family Corp has 4 individual owners: Dad 45%, Mom 25%, Son 15%, Daughter 15%. All U.S. citizens. Corp owns 30% of a partnership. Cash accounting method. Average gross receipts $2.4M. Distributed $60,000 in cash dividends. Owns muni bonds paying $4,200 tax-exempt interest.
Practice · Chapter 10
Ch 10 — Schedule L Balance Sheet Tie-Out
Skinner Corp end-of-year: Cash $180,000, A/R $92,000, Inventory $92,000, Depreciable assets $340,000, Accumulated dep $85,000, Land $60,000. A/P $46,000, Notes payable in 1+ years $175,000, Common stock $10,000, APIC $90,000, Retained earnings ??? Compute end-of-year Line 25 to make Line 15 = Line 28.
Practice · Chapter 11
Ch 11 — Schedule M-1 Reconciliation
Books: Net income $200,000. Federal tax expense $42,000. Nondeductible 50% meals disallowance $8,000. Tax-exempt muni interest $2,000. Tax depreciation exceeds book depreciation by $18,000. Compute Line 28 taxable income via M-1.
Practice · Chapter 12
Ch 12 — Schedule M-2 Retained Earnings Rollforward
Skinner Corp: Beginning Retained Earnings $340,000. Net income per books this year $200,000. Cash dividend paid to shareholder $50,000. No other adjustments.
Practice · Chapter 13
Ch 13 — Reasonable Comp Trap
Sole shareholder is officer & only employee. Corp had $600,000 gross receipts, $50,000 in COGS+overhead. Owner paid himself $520,000 W-2 in an industry where comparable comp is $180K–$220K. No dividends paid. IRS audit challenges $300,000 of comp as excessive. What are the tax consequences?