1120 Preparation and Planning 2: Income (2026 Edition)

Author: Barbara Weltman, Greg White

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

This 1 hour course provides a refresher on the preparation of corporate income tax returns. It is the second in a series of courses on Form 1120 preparation, focusing on income. The course reflects the extensive changes effective for 2025 that were made by the One Big Beautiful Bill Act of 2025 (OBBB Act) and other legislation, court cases, and IRS pronouncements. These changes impact 2025 tax year returns that will be filed during the 2026 filing season and refund opportunities for earlier years; as well as point the way to strategic planning in 2026 and beyond. This course brings the tax preparer "up-to-speed" in preparing 2025 tax returns for the 2026 filing season.

Publication Date: October 2025

Designed For
Tax Practitioners

Topics Covered

• Introduction
• Business Income in General
• Reporting Inventory
• Dividends Received
• Interest Income
• Rents and Royalties
• Capital Gains and Losses
• Sales of Business Property
• Involuntary Conversions
• Depreciation Recapture
• Installment Sales
• Like-Kind Exchanges
• Other Income
• Schedules M-1, M-2, and M-3

Learning Objectives

• Define general concepts affecting the reporting of income
• Recognize how to report inventory on Form 1125-A
• Identify and report other income items
• List filing requirements for Schedules M-1, M-2, and M-3
• Identify the form used to determine the cost of goods sold
• Identify what percentage for the dividends-received deduction is allowed for a wholly owned affiliated domestic corporation

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None