605
U.S. Income Tax Return for an S Corporation
Form 1120S Do not file this form unless the corporation has timely filed
OMB No. 1545-0130
Department of the Treasury
Internal Revenue Service
Form 2553 to elect to be an S corporation.
See separate instructions.
2001
For calendar year 2001, or tax year beginning , 2001, and ending , 20
A Effective date of election Name C Employer identification number
as an S corporation Use
IRS
label. Number, street, and room or suite no. (If a P.O. box, see page 11 of the instructions.) D Date incorporated
Other-
B Business code no. wise,
(see pages 29–31)
print or City or town, state, and ZIP code E Total assets (see page 11)
type.
$
F Check applicable boxes: (1) Initial return (2) Final return (3) Name change (4) Address change (5) Amended return
G Enter number of shareholders in the corporation at end of the tax year
Caution: Include only trade or business income and expenses on lines 1a through 21. See page 11 of the instructions for more information.
1a Gross receipts or sales b Less returns and allowances c Bal 1c (34)
2 Cost of goods sold (Schedule A, line 8) 2 (39)
Income
3 Gross profit. Subtract line 2 from line 1c 3
4 Net gain (loss) from Form 4797, Part II, line 18 (attach Form 4797) 4 (36 and 52)
5 Other income (loss) (attach schedule) 5 (37)
6 Total income (loss). Combine lines 3 through 5 6
7 Compensation of officers 7 (40)
(see page 12 of the instructions for limitations)
8 Salaries and wages (less employment credits) 8
9 Repairs and maintenance 9 (41)
10 Bad debts 10 (42)
11 Rents 11 (43)
12 Taxes and licenses 12 (44)
13 Interest 13 (45)
14a Depreciation (if required, attach Form 4562) 14a
b Depreciation claimed on Schedule A and elsewhere on return 14b
c Subtract line 14b from line 14a 14c (47)
15 Depletion (Do not deduct oil and gas depletion.) 15 (48)
16 Advertising 16 (49)
17 Pension, profit-sharing, etc., plans 17 (50)
Deductions
18 Employee benefit programs 18 (51)
19 Other deductions (attach schedule) 19 (53+ 46) *
20 Total deductions. Add the amounts shown in the far right column for lines 7 through 19 20
21 Ordinary income (loss) from trade or business activities. Subtract line 20 from line 6 21 (59 + 60)
22 Tax: a Excess net passive income tax (attach schedule) 22a (76)
b Tax from Schedule D (Form 1120S) 22b (75)
22c
Tax and Payments
c Add lines 22a and 22b (see page 16 of the instructions for additional taxes)
23 Payments: a 2001 estimated tax payments and amount applied from 2000 return 23a
b Tax deposited with Form 7004 23b
c Credit for Federal tax paid on fuels (attach Form 4136) 23c
d Add lines 23a through 23c 23d
24 Estimated tax penalty. Check if Form 2220 is attached 24
25 Tax due. If the total of lines 22c and 24 is larger than line 23d, enter amount owed. See page
4 of the instructions for depository method of payment 25
26 Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid 26
27 Enter amount of line 26 you want: Credited to 2002 estimated tax Refunded 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.
Sign
May the IRS discuss this return
Here with the preparer shown below
(see instructions)? Yes No
Signature of officer Date Title
Date Preparer’s SSN or PTIN
Preparer’s Check if
Paid signature self-employed
Preparer’s Firm’s name (or EIN
yours if self-employed),
Use Only address, and ZIP code Phone no. ( )
For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11510H Form 1120S (2001)
* Other deductions (53 + 46), includes salaries and wages that are not shown separately.
606
Form 1120S (2001) Page 2
Schedule A Cost of Goods Sold (see page 16 of the instructions)
1 Inventory at beginning of year 1
2 Purchases 2
3 Cost of labor 3
4 Additional section 263A costs (attach schedule) 4
5 Other costs (attach schedule) 5
6 Total. Add lines 1 through 5 6
7 Inventory at end of year 7
8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 8 (39)
9a Check all methods used for valuing closing inventory:
(i) Cost as described in Regulations section 1.471-3
(ii) Lower of cost or market as described in Regulations section 1.471-4
(iii) Other (specify method used and attach explanation)
b Check if there was a writedown of “subnormal” goods as described in Regulations section 1.471-2(c)
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970)
d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing
inventory computed under LIFO 9d
e Do the rules of section 263A (for property produced or acquired for resale) apply to the corporation? Yes No
f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? Yes No
If “Yes,” attach explanation.
Schedule B Other Information Yes No
1 Check method of accounting: (a) Cash (b) Accrual (c) Other (specify)
2 Refer to the list on pages 29 through 31 of the instructions and state the corporation’s principal:
(a) Business activity (b) Product or service
3 Did the corporation at the end of the tax year own, directly or indirectly, 50% or more of the voting stock of a domestic
corporation? (For rules of attribution, see section 267(c).) If “Yes,” attach a schedule showing: (a) name, address, and
employer identification number and (b) percentage owned.
4 Was the corporation a member of a controlled group subject to the provisions of section 1561?
5 Check this box if the corporation has filed or is required to file Form 8264, Application for Registration of a Tax
Shelter
6 Check this box if the corporation issued publicly offered debt instruments with original issue discount
If so, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount
Instruments.
7 If the corporation: (a) filed its election to be an S corporation after 1986, (b) 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 its basis (or the
basis of any other property) in the hands of a C corporation, and (c) has net unrealized built-in gain (defined in section
1374(d)(1)) 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 page 17 of the instructions) $
8 Check this box if the corporation had accumulated earnings and profits at the close of the tax year (see
page 17 of the instructions)
Note: If the corporation had assets or operated a business in a foreign country or U.S. possession, it may be required to attach
Schedule N (Form 1120), Foreign Operations of U.S. Corporations, to this return. See Schedule N for details.
Schedule K Shareholders’ Shares of Income, Credits, Deductions, etc.
(a) Pro rata share items (b) Total amount
1 Ordinary income (loss) from trade or business activities (page 1, line 21) 1
2 Net income (loss) from rental real estate activities (attach Form 8825) 2 (69 and 70)
3a Gross income from other rental activities 3a
bExpenses from other rental activities (attach schedule) 3b
cNet income (loss) from other rental activities. Subtract line 3b from line 3a 3c (72 and 73)
Income (Loss)
4 Portfolio income (loss):
aInterest income 4a (63)
bOrdinary dividends 4b (62)
cRoyalty income 4c (64)
dNet short-term capital gain (loss) (attach Schedule D (Form 1120S)) 4d (65)
e(1) Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) 4e(1) (66)
(2) 28% rate gain (loss) (3) Qualified 5-year gain
f Other portfolio income (loss) (attach schedule) 4f (67)
5 Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) 5
6 Other income (loss) (attach schedule) 6
Form 1120S (2001)
607
Form 1120S (2001) Page 3
Schedule K Shareholders’ Shares of Income, Credits, Deductions, etc. (continued)
(a) Pro rata share items (b) Total amount
Deductions
7 Charitable contributions (attach schedule) 7
8 Section 179 expense deduction (attach Form 4562) 8
9 Deductions related to portfolio income (loss) (itemize) 9
10 Other deductions (attach schedule) 10
Investment
Interest
11a Interest expense on investment debts 11a
b (1) Investment income included on lines 4a, 4b, 4c, and 4f above 11b(1)
(2) Investment expenses included on line 9 above 11b(2)
12a Credit for alcohol used as a fuel (attach Form 6478) 12a
b Low-income housing credit:
(1) From partnerships to which section 42(j)(5) applies 12b(1)
Credits
(2) Other than on line 12b(1) 12b(2)
c Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468) 12c
d Credits (other than credits shown on lines 12b and 12c) related to rental real estate activities 12d
e Credits related to other rental activities 12e
13 Other credits 13
Adjustments and Tax
14a Depreciation adjustment on property placed in service after 1986 14a
Preference Items
b Adjusted gain or loss 14b
c Depletion (other than oil and gas) 14c
d (1) Gross income from oil, gas, or geothermal properties 14d(1)
(2) Deductions allocable to oil, gas, or geothermal properties 14d(2)
e Other adjustments and tax preference items (attach schedule) 14e
15a Name of foreign country or U.S. possession
b Gross income from all sources 15b
c Gross income sourced at shareholder level 15c
d Foreign gross income sourced at corporate level:
(1) Passive 15d(1)
Foreign Taxes
(2) Listed categories (attach schedule) 15d(2)
(3) General limitation 15d(3)
e Deductions allocated and apportioned at shareholder level:
(1) Interest expense 15e(1)
(2) Other 15e(2)
f Deductions allocated and apportioned at corporate level to foreign source income:
(1) Passive 15f(1)
(2) Listed categories (attach schedule) 15f(2)
(3) General limitation 15f(3)
g Total foreign taxes (check one): Paid Accrued 15g
h Reduction in taxes available for credit (attach schedule) 15h
16 Section 59(e)(2) expenditures: a Type b Amount 16b
17 Tax-exempt interest income 17
18 Other tax-exempt income 18
19 Nondeductible expenses 19
Other
20 Total property distributions (including cash) other than dividends reported on line 22 below 20
21 Other items and amounts required to be reported separately to shareholders (attach
schedule)
22 Total dividend distributions paid from accumulated earnings and profits 22
23 Income (loss). (Required only if Schedule M-1 must be completed.) Combine lines 1 through
6 in column (b). From the result, subtract the sum of lines 7 through 11a, 15g, and 16b 23
Form 1120S (2001)
608
Form 1120S (2001) Page 4
Schedule L Balance Sheets per Books Beginning of tax year End of tax year
Assets (a) (b) (c) (d)
1 Cash (3)
2a Trade notes and accounts receivable (4)
b Less allowance for bad debts (5)
3 Inventories (6)
4 U.S. Government obligations (7)
5 Tax-exempt securities (8)
6 Other current assets (attach schedule) (9)
7 Loans to shareholders (10)
8 Mortgage and real estate loans (11)
9 Other investments (attach schedule) (12)
10a Buildings and other depreciable assets (13)
b Less accumulated depreciation (14)
11a Depletable assets (15)
b Less accumulated depletion (16)
12 Land (net of any amortization) (17)
13a Intangible assets (amortizable only) (18)
b Less accumulated amortization (19)
14 Other assets (attach schedule) (20)
15 Total assets (2)
Liabilities and Shareholders’ Equity
16 Accounts payable (22)
17 Mortgages, notes, bonds payable in less than 1 year (23)
18 Other current liabilities (attach schedule) (24)
19 Loans from shareholders (25)
20 Mortgages, notes, bonds payable in 1 year or more (26)
21 Other liabilities (attach schedule) (27)
22 Capital stock (29)
23 Additional paid-in capital (30)
24 Retained earnings (31) **
25 Adjustments to shareholders’ equity (attach schedule)
26 Less cost of treasury stock ( ) ( (32) )
27 Total liabilities and shareholders’ equity (21)
Reconciliation of Income (Loss) per Books With Income (Loss) per Return (You are not required to
Schedule M-1
complete this schedule if the total assets on line 15, column (d), of Schedule L are less than $25,000.)
1 Net income (loss) per books 5 Income recorded on books this year not included
2 Income included on Schedule K, lines 1 through on Schedule K, lines 1 through 6 (itemize):
6, not recorded on books this year (itemize): a Tax-exempt interest $ (35)
3 Expenses recorded on books this year not 6 Deductions included on Schedule K, lines
included on Schedule K, lines 1 through 1 through 11a, 15g, and 16b, not charged
11a, 15g, and 16b (itemize): against book income this year (itemize):
a Depreciation $ a Depreciation $
b Travel and entertainment $
7 Add lines 5 and 6
4 Add lines 1 through 3 8 Income (loss) (Schedule K, line 23). Line 4 less line 7
Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders’
Schedule M-2
Undistributed Taxable Income Previously Taxed (see page 27 of the instructions)
(a) Accumulated (b) Other adjustments (c) Shareholders’ undistributed
adjustments account account taxable income previously taxed
1 Balance at beginning of tax year
2 Ordinary income from page 1, line 21
3 Other additions
4 Loss from page 1, line 21 ( )
5 Other reductions ( ) ( )
6 Combine lines 1 through 5
7 Distributions other than dividend distributions
8 Balance at end of tax year. Subtract line 7 from line 6
** Retained Earnings (31), includes adjustments to shareholder's equity that are not shown separately. Form 1120S (2001)