Query on 1099-INT Interest Treatment for S-Corp in Lacerte 23

[Tax Prepper]

Hello, I’m seeking clarification on how to treat interest income from a treasury bond reported on a 1099-INT for an S-Corp in Lacerte 23. Specifically, I would like to know how this type of income is categorized for an S-Corp and the correct way to enter it in Lacerte 23. Any guidance or steps you can provide would be greatly appreciated. Thank you!

[PhoebeRoberts]

I do this:

[Tax Prepper]

Thank you for the quick response!

Does this address the fact that interest on Treasury Bonds held by S-Corp don't get taxed at the State level?

I really appreciate your help. 

[PhoebeRoberts]

It creates a memo on the Federal K-1, and the 1040 preparer can handle it appropriately.

If there's a specific state you're asking about, and a certain presentation that state prefers, tell me what output you'd like and I can suggest input. For Oklahoma, the adjustment is in Screen 45. For Kansas, Louisiana, and North Dakota, the adjustment is in Screen 43.

[Tax Prepper]

This is for an S-Corp in California that sold a treasury bond and received a 1099-INT in 2023. I just want to make sure that the interest is taxed federally and not on the state level. 

[PhoebeRoberts · Accepted solution]

[Tax Prepper]

Thank you! You are awesome!