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

Shareholder Compensation on Form 1120S

lr
Level 1

S corporations that have less than $500,000 in total receipts.  When I record on Form 1120S Smart Worksheet Line B for the shareholder compensation not on Form 1125-E, ProSeries does not show a deduction the shareholder compensation.  Line 21 Ordinary Business Income does not reflect the shareholder/officer compensation.  For ProSeries to reflect compensation on the correct line, I must put the compensation on Line 7 of the 1120S that is for Form 1125-E and complete Form 1125-E when not required to do so.  Why?  Is this an upcoming software fix?

This discussion has been locked. New comments cannot be posted on this discussion anymore. Start a new discussion

1 Best Answer

Accepted Solutions
IntuitCharlene
Moderator
Moderator

I was reviewing the Shareholder-Employee Compensation Smart Worksheet and line B does indicate to See Tax Help. Based on the help center line B will only impact the tentative business income limitation to determine the allowable Section 179 Depreciation Deduction. 

For the Compensation to show on line 7 you would just manually enter it on line 7 if the 1125-E is not required. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Accept as solution"

View solution in original post

1 Comment 1
IntuitCharlene
Moderator
Moderator

I was reviewing the Shareholder-Employee Compensation Smart Worksheet and line B does indicate to See Tax Help. Based on the help center line B will only impact the tentative business income limitation to determine the allowable Section 179 Depreciation Deduction. 

For the Compensation to show on line 7 you would just manually enter it on line 7 if the 1125-E is not required. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Accept as solution"