We Value Your Privacy
We use cookies to enhance your browsing experience and analyze site traffic. By clicking Accept, you consent to our use of cookies. Privacy Policy
USA Tax Glossary
Form 1120-S is the U.S. Income Tax Return for an S Corporation. It reports S corporation income, deductions, credits, and shareholder pass-through items.
Investor Context
Some real estate-adjacent businesses use S corporations, but rental real estate ownership through an S corporation can create planning and tax complexity. Entity choice should be reviewed before transferring property.
Why It Matters
S corporations issue shareholder Schedule K-1s.
Shareholders generally report their share of S corporation income whether or not cash was distributed.
Unlike most partnership income, S corporation income is generally not self-employment income under IRS instructions.
Records To Prepare
Corporate books and payroll records
Shareholder ownership and basis records
Property and rental activity records if the S corporation owns rentals
Prior-year Form 1120-S and Schedule K-1 copies
Common Caution
Do not assume an S corporation is the best entity for holding rental real estate. The right structure depends on tax, legal, financing, and exit considerations.
Direct Answers
Yes. Form 1120-S is the federal income tax return for an S corporation.
No. Shareholders generally include their share of S corporation income on their returns whether or not it is distributed.
Official IRS Reference
IRS: Instructions for Form 1120-SRelated Terms
Schedule K-1 reports an owner share of income, deductions, credits, and other tax items from a pass-through entity such as a partnership or S corporation.
Form 8825 is used by partnerships and S corporations to report rental real estate income and deductible rental real estate expenses.
The Qualified Business Income deduction, also called the Section 199A deduction or QBI deduction, is a deduction for eligible noncorporate taxpayers with qualified business income, subject to limitations.
