1120S Return, always been an S-Corp. Have a distribution entered on page 5, this does not exceed prior earnings. The error message keeps telling me that we have C -Corp distributions and will not le...

Acct1981 · ‎05-18-2021

Entered the distribution on page 5. Error message tells be I can't mark form for excessive investment interest because on 1120-S,Page 5, M-2 Line 8, col.c shows as a c-corp. This has z

PATAX · ‎05-18-2021

@Acct1981 I have never had an issue in the past with distributions for S corporations... Are you sure you are entering it in the correct location?

Acct1981 · ‎05-18-2021

I think so. I entered the distribution on the 1120S, page 4, A (Shareholders Distributions & Dividends Smart Worksheet. Thanks for your reply.

sm965897 · ‎06-01-2021

Hello Acct1981. If the S corp has never been a C corporation, you do not need to complete the Excess Net Passive Income Tax Statement, which is where I believe you are seeing this error.

Thanks

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Acct1981 · ‎06-02-2021

Thanks for your help, that is the problem.