Where do I input information from a K-1 form 1120S in an 1120S return in Proseries?

[Giraffes5gb]

I am preparing an 1120S whose only income comes from another K-1 Form 1120S. In other words, the S Corporation return I am preparing is a shareholder in another S Corp and has no other activity.

I just have 3 lines on the K-1 form 1120S received that I need to input into the S corp return I am preparing.

Business income

Non-deductible expenses 16c 

Distributions

I am thinking, I just have to direct enter the information on Pages 3 thru 5 of form 1120S. And not report the income/distributions anywhere else in the return except input distributions also on K-1 worksheet?

[dascpa · Accepted solution]

Because an S corp must be owned by individuals, trusts, or estates, in general S corp stock cannot be held by another S corporation, a C corporation, an LLC, or a partnership. Purchasing shares of another S corporation voids that company's election of S corp treatment.  An S Corp can have income from a Partnership though.

[Giraffes5gb]

Thank you very much! Makes sense!