Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

1120S Return, always been an S-Corp. Have a distribution entered on page 5, this does not exceed prior earnings. The error message keeps telling me that we have C -Corp distributions and will not let me mark the excessive interest income earnings non C.

Acct1981
Level 2

Entered the distribution on page 5.  Error message tells be I can't mark form for excessive investment interest because on 1120-S,Page 5, M-2 Line 8, col.c shows as a c-corp.  This has z

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
sm965897
Employee
Employee

Hello Acct1981. If the S corp has never been a C corporation, you do not need to complete the Excess Net Passive Income Tax Statement, which is where I believe you are seeing this error. 

Thanks

View solution in original post

4 Comments 4
PATAX
Level 15

@Acct1981 I have never had an issue in the past with distributions for S corporations... Are you sure you are entering it in the correct location?

0 Cheers
Acct1981
Level 2

I think so.  I entered the distribution on the 1120S, page 4, A (Shareholders Distributions & Dividends Smart Worksheet.  Thanks for your reply.

sm965897
Employee
Employee

Hello Acct1981. If the S corp has never been a C corporation, you do not need to complete the Excess Net Passive Income Tax Statement, which is where I believe you are seeing this error. 

Thanks

Acct1981
Level 2

Thanks for your help, that is the problem.  

0 Cheers