K1 Line Item 17 AC Showing Gross Income

[FrostedWolf]

Within my 1120 K1 it is showing my clients gross income on line 17 AC of the K1.  This is listed as Net Self Employment Income.   This should not be here.  The net loss or profit is on line one.   The entry in this field is incorrect.  How do I resolve this issue.  It is self populating. 

[ramdas]

Curious about this too! It adds SE tax on the 1040 if you follow the data entry, which doesn't make any sense.

[sjrcpa]

The K-1 is correct. The 1040 input is wrong. Don't enter it in that field. It is not self-employment income.

This has been reported here about 6 times already.

[George4Tacks]

Maybe @IntuitBettyJo can get some feedback on Lacerte input in the 1040 for the S-Corp line 17AC. I believe it is link to what 17AC was in 2019, not what it is in 2020. 

It is POSSIBLY due to the fact the 1120S instructions are still in draft form.  The draft form says 17AC is "Code AC. Gross receipts for section 448(c) Use the gross receipts
amount to figure the business interest
expense you can deduct, if
applicable. See section 163(j) and the
Instructions for Form 8990 for details"

Lacerte is showing it as SE income. 

[IntuitBettyJo]

Hi there, 

I'll take a look and see what info I can find on this and update you accordingly. Thanks for pointing it out. 

-Betty Jo 

[FrostedWolf]

I had Lacerte tech support review my findings.  They did a screen capture.  The field for K-1 entry 17AC is showing incorrectly within the program.  After checking she said this should be corrected when all forms have been finalized.   Resolution is pending.  

The 1120S is providing correct output.  The issue is within the 1040.  

[IntuitBettyJo]

Hi again, 

The SCORP 2020 Schedule K-1 Line 17AC is now "Gross receipts for section 448(c)". However, in the Individual module, Screen 20.2 for S-Corp the input for line 17AC still reflects "Net Earnings From Self Employment". (Series 56, Code 4).  This unexpected behavior has been reported and fixed within our next release which is currently scheduled for tomorrow.

Hope this helps!

-Betty Jo 

[ANNETTE-COMMONCENTS]

Betty Jo,

I have the newest update and can't find where I'm supposed to input this. There is nowhere to input 17AC

[sjrcpa]

Do you need to?

[DiegoR85]

Hi Betty Jo,

I am on the latest version of Lacerte and I still do not see the correction for box 17AC?

[George4Tacks]

Code AC. Gross receipts for section 448(c)

Use the gross receipts amount to figure the business interest expense you can deduct, if applicable. See section 163(j) and the Instructions for Form 8990 for details.

[drew whitton]

1120-S, k-1 box 17AC is an informational piece that represents the gross receipts allocated to that partner based on their ownership percentage. 

[kellytieu]

Just incase I lost contact with you. Here is my email: [email address removed]

Iam curious about it because I have the same income last year and it doesn't show on k-1 box 17 AC so I don't know why it triggered this year. Is that okay? or what should I do to correct it? Thanks

Kelly

[Jupiter]

I did the 1120S about a week ago, March 22, 2021.  I got a number on 17AC for my k-1.  Apparently, it isn't fixed. Can I just ignore it?

[kellytieu]

Is there anyway to have a better explain why we have 17AC on K-1? Please be advised. Thank you

[sjrcpa]

Per the 1120S Instructions

[George4Tacks]

In simple terms, TP  bought the "shares" of some LP. Brokerage knows what they paid and they show it on the 1099B. The 17K is give you an ability to now properly adjust that number and throw a couple more numbers on the tax return that will now properly reflect all of the tax shenanigans that the LP has done over the years.