Where do you deduct section 174 research & development expenses that are on your scorp k-1

[sjrcpa]

Aren't they already deducted to arrive at Line 1? Or are you asking about the credit?

[lmcarey1]

Well, in looking at the Schedule K-1 Form 1120S - there is an amount in Box 12 with a code S?  Which they said were their share of IRC Section 174 research and development expenses incurred by the S-Corp.  However, there is also an amount of a credit in Box 13 with a Code M?  Thank you for your input!

[lmcarey1]

No they are not already deducted from line 1