joshuabarksatlcs
Level 10

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.    


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