Generating a Personal Service Corporation Schedule H in Lacerte

How to mark an 1120 as a personal service corporation:

1. Go to Screen 4.1, Miscellaneous Information.
2. Locate the Miscellaneous section.
3. Check one of the following boxes:
   • Qualified personal service corporation - Check this box if this is a qualified personal service corporation. If you check this box, Lacerte checks the applicable box at the top of Form 1120 and applies the 35% flat tax rate to the corporation. The program completes Form 8810 if the corporation is involved in any passive activities.
   • Nonqualified personal service corporation - Check this box if this corporation is a personal service corporation that does not meet the tests for a qualified personal service corporation. If you check this box, Lacerte checks the applicable box at the top of Form 1120 but does not apply the 35% flat tax rate for the corporation. The program completes Form 8810 if the corporation is involved in any passive activities.

How to generate Schedule H

1. Go to Screen 27, Schedule H - Sec 280H Limitations (PSCs)
2. Complete any applicable information.