This article will help you generate Form 2553, Election by a Small Business Corporation in Lacerte.
Before you start:
Form 2553, Election by a Small Business Corporation, is used by a corporation or other eligible entity to be an S-corporation. For details on when and where to file Form 2553, see the IRS Form Instructions. In Lacerte, you can use either the corporate or S-corporate module to generate this form. Select the return type you'll be using below to view step-by-step instructions.
Corporate (1120)
- Open Screen 59, S Corporation Election (2553).
- In the Shareholder list, click Election Information.
- Check the box, Print Form 2553 with complete return.
- Make entries in the remainder of this section to complete boxes D through I of Form 2553.
- In the Shareholder list, select or add the Shareholder.
- Make entries in Name of Shareholder, Street Address, City, State, ZIP code, and SSN or EIN.
- Enter the Number of Shares or percentage of ownership for each shareholder.
- Enter the date each shareholder acquired the shares in Date Acquired.
- Enter the month and year of each shareholder's tax year ending date in S/H Tax Year End (m/d) if it is not 12/31.
S-Corporate
- Open Screen 53, S Corporation Election (2553).
- In the Shareholder list, click Election Information.
- Select the 1 or 2 in "1 = Print Form 2553 Separately, 2 = Print Form 2553 with Return". The program uses entries on the Client Information screen to complete the name, address, and boxes A through C of Form 2553.
- Make entries in the remainder of this section to complete boxes D through I of Form 2553.
- In the Shareholder list, select Shareholder.
- Lacerte uses information from Screen 5, Shareholder information to complete Form 2553, Part 1, Shareholders' Consent Statement, lines J through N for each Shareholder. Use the fields in Screen 53 to override the information from Screen 5.
- Enter the Number of Shares or percentage of ownership for each shareholder.
Note: this information doesn't flow from Screen 6, Stock Ownership. - Enter the date each shareholder acquired the shares in Date Acquired.
- Enter the month and year of each shareholder's tax year ending date in S/H Tax Year End (m/d) if it is not 12/31.
Troubleshooting tips:
- If Screen 53 is inaccessible (grayed out), ensure shareholders are entered in Screen 5, Shareholder Information.
- If shareholders are already entered in Screen 5, select on the Clients tab and then back on the Detail tab. The Screen 53 should become available.
- If the percentages are needed in column L to print rather than number of shares, enter a check the box in Screen 53 (code 43) " Treat all entries in 'number of shares or percentage of ownership' as percentages."
