Follow these steps to generate Form I-335, Worksheet 1 in the program:
- Go to Screen 20, Passthrough K-1's.
- Select Partnership Information or S Corporation Information under Passthrough K-1's in the left navigation menu.
- Form I-335 does not apply to estates or REMICs.
- Select the applicable activity under Partnership or S Corporation in the left navigation menu.
- Scroll down to Part II - Information About the [Partner/Shareholder].
- Make sure the Not a passive activity box is checked.
- The individual must have actively participated in the activity.
- Select South Carolina Active Trade or Business Amounts from the left Sections box.
- You may have to scroll down to find this section.
- Enter at least one income amount or the Ownership percentage (.xxx/1=100%).
- The minimum requirements to trigger the SC I-335 in this section are at least one income amount or ownership percentage.
- Go to Screen 54.331, South Carolina Taxes.
- Scroll down to the Schedule I-335 section.
- Check the box labeled Use I-335 to calculate tax, if applicable.
- This will tell Lacerte to use Form I-335 to automatically calculate tax on Schedule C, and F income as entered in the federal return.
Schedule C will automatically flow onto the Form I-335, Worksheet 1.