MD grants for S-Corps?

[StacyStacy]

I see that the MD individual tax forms are now updated in proseries.  But can anyone tell me how an S-corporation excludes the MD grants (such as the 3-R initiative) they received from income?  Where does it go on the form 510?

[dascpa]

If it's tax-free Federal and MD it's a M-1 adjustment.  If it's tax-free Federal only it's an addition adjustment on the K-1 of MD.

[StacyStacy]

Actually, it's taxable for Federal but tax free for MD.  So what to do then?  K1 subtraction on the 510?

[sjrcpa]

Yes but the forms are not ready for prime time yet.

[dascpa]

Exactly correct.

[StacyStacy]

but I can't even find on the MD website what forms will be used for that.  It keeps talking about a form for corporations but says that the S-Corps will report the change on the K1.  So you think that the K1 will be updated to accommodate this adjustment?

[sjrcpa]

Maybe?

Maybe the elusive Form 511 will shed light?

Thank goodness MD returns are not due until July 15.

[StacyStacy]

Thanks for updates. True - we have time but tell that to the clients lol.  OK - keep me posted if you hear anything more.