Entering charitable contributions in the S Corporate module of Lacerte

When working on an S Corporate return in Lacerte, you may come across the need to enter charitable contributions (cash or noncash) for your business client.

S corporations can deduct qualifying charitable contributions made during the year, which flow through to shareholders via Schedule K-1. You can enter both cash and noncash contributions in the S Corporate module to ensure they appear correctly on Form 1120-S, Schedule K and each shareholder’s K-1.

Entering charitable contributions

The 30% and 60% contribution limits are applied at the shareholder level, not the corporate level. These limitations are calculated on the individual’s return.

Cash:

1. Go to Screen 20, Income and Deductions.
2. Scroll down to the Deductions section.
3. Complete the applicable fields under the Charitable Contributions subsection (The 30% and 60% limitations are applied at the shareholder level.)
   1. Enter the applicable amount in 60% limitation (code 123).
   2. Enter the applicable amount in 30% limitation (code 124).

Noncash:

1. Go to Screen 25, Noncash Contributions (8283).
2. Complete the applicable information for the noncash contribution.

Charitable contributions will flow to the Form 1120S Schedule K, page 3, line 12a and to the shareholder's Schedule K-1, line 12, codes A-G.