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S-Corp

Dragon
Level 2

Lacerte is making the income in an S-Corp subject to self-employment tax (Line 17 code AC), is there a check box that is causing it? How would I correct it?

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PS04
Level 1

I have same issue on all my S corp returns, called tech support yesterday and they are supposed to fix it.

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9 Replies 9
PhoebeRoberts
Level 9
Level 9

Where are you seeing an indication that Box 17 Code AC is self-employment income? My Lacerte puts the shareholder's prorata share of gross income under that code, but there's no notation indicating what it is. 

I think there's an undesirable and potentially inaccurate presentation there, but I can't figure out why you think it's SE income.

Dragon
Level 2

Thank you, but when I enter the line 17 code AC, on the personal return, the two options I have is self-employment, or fishing income. So it brings it over to the personal return as self-employment. I'm not sure why in the S-Corp tax return it is coding the income as being self-employed, as it should just come over as ordinary income. I have looked at the 1120S entries and I don't see what I could have entered to make the program think it's a self-employed income.

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abctax55
Level 15

Did YOU prepare the K-1 in Lacerte, or did it come from another source?

Lacerte is populating line 17-AC on the S-Corp K-1 but the amount is the gross receipts of the Corp.  And when transferring it to the individual module, line 17-AC doesn't populate with the amount.

Were the K-1 codes changed for S-Corps?.... I know they were for Partnerships.

Arghhhhh

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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rbynaker
Level 11

Were the K-1 codes changed for S-Corps?.... I know they were for Partnerships.

All you have to do is look at the codes on page 2 of the K-wait-a-minute . . . I don't know what the IRS was thinking in removing K-1 page 2.

George4Tacks
Level 15
??? You mean people actually look at page 2????

ex-AllStar
Dragon
Level 2

Thank you,

I was the one that prepared the 1120S and Lacerte automatically put the code AC on line 17, but when you preforma the K-1 to the personal, it doesn't transfer, but it is still on the K-1. On the personal side the codes relate to self employment. I don't want it to be on the k-1 and not enter it, then get a letter from the IRS saying the client owes the self employment tax.

 

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George4Tacks
Level 15

Someone else puzzled over this earlier, but I can't find the post. Look at the k-1 instructions:

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.

It may be the program is not yet read for prime time. 


ex-AllStar
abctax55
Level 15

"...It may be the program is not yet read for prime time."

What a novel thought.  Especially since my payment IN FULL cleared my account way back in July.  Seems quite fair to me /S

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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PS04
Level 1

I have same issue on all my S corp returns, called tech support yesterday and they are supposed to fix it.

View solution in original post