R&D Credit

[BrianNOLACPA]

Schedule C income of $1,115,956 that has an R&D Credit of $4,977.

The Form 3800 limits the credit to zero by the IRC 41(g) limitation.

The worksheet shows zero taxable income attributable to the sole proprietorship.

Therefore the credit carries forward.

How do I get Lacerte to recognize the Schedule C as a qualifying business in order to pick up this income and not limit the credit out via the 41(g) limitation.

[sjrcpa]

This doesn't answer your question, but is that $1.1 million after capitalizing all of the R&D expenses under IRC 174?

[BrianNOLACPA]

The Schedule C net profit is after R&D Capitalized expenditures.