Preparing an S-Corporate return in Lacerte

In this article, we'll go over the general flow of completing a S-Corporate (Form 1120S) return in Lacerte, as well as some potential next steps.

1. Create the client in Lacerte by selecting Client from the toolbar, then go to Tax Type and select S-Corporation.
2. You'll now be presented with your S-Corporation client list. From here, you can create a new S-Corp client. Go to Client and select Add. Assign a client number in the pop-up, and check Password Protect if you'd like to do so. Then select OK.
3. Complete all the necessary fields (name, address, misc. info, etc.) and then add any applicable states and indicate which returns should be e-filed.
4. Once you're in the client screen, you'll see an option along the left rail labeled Select e-file and Add a state. Here, you can select the main forms (Federal, Federal 114), as well as any applicable states.
   • For more info on adding states, see here.
5. Add shareholders by going to Screen 5, Shareholder information and use the Add button along the left rail to add more shareholders.
6. Select Contents on the bottom left of the screen to start preparing your return.
7. Add shareholder stock percentages by going to Screen 6, Stock Ownership, which you can find under the Shareholder Information section.
   • For more info on this, see here.
8. For the main form, Form 1129-S page 1, information and amounts can be entered as follows:
   • Inputs for A-J are mainly found in Screen1, Client information ⮕ Miscellaneous Information
     • For info on finding inputs for a line or box, see here.
   • Income (lines 1a-6) and Deductions (lines 7-22) can be found under the Ordinary Income section of the Contents.
   • The Tax and Payment section is a combination of direct inputs and calculations.
     See related articles:
     • Excess Net Passive Income Tax on Form 1120S
     • How to enter estimated tax payments
     • Entering additional estimated tax payments
9. Inputs for the Schedule B are found in Screen1, Client information ⮕ Miscellaneous Information
   • For info on finding inputs for a line or box, see here.
10. Next, inputs for Form 1120-S Schedule K can be found in Screens 20-28.
    • Amounts from the Schedule K will flow to the shareholder’s Schedule K-1 based on the stock ownership percentage from Screen 6, Stock Ownership.
    • Screen 20, Income and Deductions is a combination of direct inputs as well as adjustment [Adjust] and overrides [Override] of automatic calculations.
    • If you have other deductions or income (loss) that you to report at the Schedule K-1 level, go to Screen 26, Other Schedule K items.
      • For more info on this, see here.
11. If you need to report a change in ownership, go to Screen 7, Change in Stock Ownership.
    • For more info on this, see here.
12. Depending on the situation, additional forms and schedules will need to be completed. Here are a few other common scenarios:
    • If you need to generate Shareholder basis statements, go to Screen 9, Shareholder's Basis, and complete all applicable info.
      • For more info on this, see here.
    • If you need to suppress Schedules L, M-1, and M-2, go to Screen 3.1, Miscellaneous Information. 
      • For more info on this, see here.
    • If you need to force Schedules L, M-1, and M-2 to generate, Enter a 1 in Screen 30, Balance Sheet Miscellaneous ⮕ Schedule L and M-1: 1=force, 2=when applicable under the Other section.
      • For more info on this, see here.
    • To balance your Schedule L, go to Screen 29, Balance Sheet.
      • For more info on this, see here.
    • If you need to manually enter items on Schedule M-1, go to Screen 31.1, Schedule M-1, M-3 ⮕ Schedule M-1
      • For more info on this, as well as how the Schedule M-1 is calculated, see here.
    • If you have other deductions or income (loss) that you to report at the Schedule K-1 level, go to Screen 33, Schedule K-1 Overrides
      • For more info on this, see here.
    • If you need to generate Schedules K-2 and K-3, go to Screen 86, Shareholders' Pro Rata Share Items, and Screen 87, Shareholder Overrides, respectively.
      • For more info on this, including info on who must file, see here.
13. Depending on the situation, additional forms and schedules may need to be completed.
14. Once you’ve completed the return, and validated all required information is entered with the required forms and schedules generating, you can either e-file the return, or print it for the purpose of review or paper-filing.