How to generate Form 6765 partnership Increasing Research Credit in ProSeries

This article will assist you with generating Form 6765, Credit for Increasing Research Activities, in ProSeries. Use the applicable instructions below for your tax type:

What's new for Form 6765 for tax year 2024:

• If you have reported Qualified Research Expenses (QREs) on line 48, you must complete Section E.
• If you are eligible and choose to follow the new ASC 730 directive, check “Yes” on line 41.
• New Section F—Qualified Research Expenses Summary. In this section, indicate if you are required to complete Section G and enter your total QREs on each applicable line.
• New Section G—Business Component Information. For tax years beginning after 2024, Section G will be required, subject to the guideline. For tax years beginning before 2025, Section G will be optional for all filers.

Table of contents:

To enter amounts for the Form 6765 in the Partnership return:

1. Open the clients return.
2. Press F6 to bring up Open Forms.
3. Type 6765 to highlight the Form 6765.
4. Select OK to open the form.
5. Select Yes or No for Are you electing the reduced credit under section 280C.
6. Select Yes or No for Are you a member of a controlled group or business under common control.
7. If you aren't electing the Alternative Simplified Credit, complete Section A and skip Section B. If you are electing the Alternative Simplified Credit, skip Section A and complete Section B.
8. Enter the applicable expenses in the remaining fields to flow to Form 6765.

The credit will flow to the Schedule K(1065), Line 15f, Other Credits, and to the Schedule K-1, Box 15 with a code L.

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If entering this information into the 1065 from a passthrough K-1:

1. Open the clients return.
2. Press F6 to bring up Open Forms.
3. Type KP to highlight the K-1 Partner
4. Select OK to open the worksheet or create a new copy.
5. Enter the credit on Line 15 code M.
6. Select the QuickZoom to enter additional info for Code M.
7. Enter the amount on line 1 or 2 depending on which is applicable.

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To enter amounts for the Form 6765 in the S Corporation return:

1. Open the clients return.
2. Press F6 to bring up Open Forms.
3. Type 6765 to highlight the Form 6765.
4. Select OK to open the form.
5. Select Yes or No for Are you electing the reduced credit under section 280C.
6. Select Yes or No for Are you a member of a controlled group or business under common control.
7. If you aren't electing the Alternative Simplified Credit, complete Section A and skip Section B. If you are electing the Alternative Simplified Credit, skip Section A and complete Section B.
8. Enter the applicable expenses in the remaining fields to flow to Form 6765.

The credit will flow to the Schedule K(1120S), Line 13g, Other Credits, and to the Schedule K-1, Box 13 with a code M.

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To enter Form 6765 in a Corporate return:

1. Open the clients return.
2. Press F6 to bring up Open Forms.
3. Type 6765 to highlight the Form 6765.
4. Select OK to open the form.
5. Select Yes or No for Are you electing the reduced credit under section 280C.
6. Select Yes or No for Are you a member of a controlled group or business under common control.
7. If you aren't electing the Alternative Simplified Credit, complete Section A and skip Section B. If you are electing the Alternative Simplified Credit, skip Section A and complete Section B.
8. Enter the applicable expenses in the remaining fields to flow to Form 6765.

The amount of credit will be calculated on the 6765 and flow from there to the 3800 and then to the 1120, page 3, Schedule J, part I, line 5c.

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To enter Form 6765 in the Individual return:

1. Open the clients return.
2. Press F6 to bring up Open Forms.
3. Type 6765 to highlight the Form 6765.
4. Select OK to open the form.
5. Select Yes or No for Are you electing the reduced credit under section 280C.
6. Select Yes or No for Are you a member of a controlled group or business under common control.
7. In the Form 6765 Section A or B Smart Worksheet select which section will apply.
   • If you aren't electing the Alternative Simplified Credit, complete Section A and skip Section B.
   • If you are electing the Alternative Simplified Credit, skip Section A and complete Section B.
8. Enter the applicable expenses in the remaining fields to flow to Form 6765.

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If entering this information from a partnership K-1:

1. Open the clients return.
2. Press F6 to bring up Open Forms.
3. Type P to highlight the K-1 Partner
4. Select OK to open the worksheet or create a new copy.
5. Enter the credit on Line 15 code M.
6. Select the QuickZoom to enter addtl info for codes E, F, G, M and P to ZZ or for PTP.
7. The amount defaults to Credit for increasing research (GBC). If any amount should apply to Credit for increasing research (ESBC) add the amount that applies to ESBC and the GBC amount will be decreased to account for the total of line M.
8. Press F6 to bring up Open Forms.
9. Type 6765 to highlight the Form 6765.
10. Select OK to open the form.
11. If applicable, check the box Check this box to also print Form 6765, if the only credit is from a K-1.
12. Select Yes or No for Are you electing the reduced credit under section 280C.
13. Select Yes or No for Are you a member of a controlled group or business under common control.
14. Enter the applicable expenses in the remaining fields to flow to Form 6765.

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If entering this information from an S corporation K-1:

1. Open the clients return.
2. Press F6 to bring up Open Forms.
3. Type S to highlight the K-1 S Corp
4. Select OK to open the worksheet or create a new copy.
5. Enter the credit on Line 13 code M.
6. Select the QuickZoom to enter addtl info for codes E, F, G, M and P to ZZ or for PTP.
7. The amount defaults to Credit for increasing research (GBC). If any amount should apply to Credit for increasing research (ESBC) add the amount that applies to ESBC and the GBC amount will be decreased to account for the total of line M.
8. Press F6 to bring up Open Forms.
9. Type 6765 to highlight the Form 6765.
10. Select OK to open the form.
11. If applicable, check the box Check this box to also print Form 6765, if the only credit is from a K-1.
12. Select Yes or No for Are you electing the reduced credit under section 280C.
13. Select Yes or No for Are you a member of a controlled group or business under common control.
14. Enter the applicable expenses in the remaining fields to flow to Form 6765.

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