joshuabarksatlc s
Level 10
09-16-2021
01:13 AM
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If I understand your question correctly, you were asking about where to enter, in the recipient's return, the Code 17AC amount, instead of where to enter the info in the S Corp return to generate the info on the K-1 under the Code.
I don't think you enter the Code 17AC amount in the recipient's return. The info is primarily for the K-1 recipient to do the Sec 448(c) test for the purpose of determining whether the Taxpayer qualifies for various exemptions. The main criterion for the test is for the three-year average to be under $25 million. Therefore, if the K-1 recipient has income in the range, I'd keep the info in the permanent file or in the tax file permanently to perform the three-year average test.
I come here for kudos and IRonMaN's jokes.