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.
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.
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.
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!
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
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.