The following are examples of credits subject to recapture and reported using code H. The qualified plug-in electric drive motor vehicle credit (including qualified two-wheeled plug-in electric vehicles and new clean vehicles). Report taxes allocable to a rental real estate activity on Form 8825. Special rules apply (discussed later). I would make sure you spike in out in the worksheets in case you are sadistic and want to someday tie back to the 941. The S corporation must make an initial determination of which items are qualified items of income, gain, deduction, and loss at its level and report to each shareholder their pro rata share of all items that may be qualified items at the shareholder level. The worksheet line 7 is zero. The corporation can't treat as separate activities those activities grouped together by a partnership. If the corporation is closely held (defined in section 460(b)(4)(C)(iii)) and it entered into any long-term contracts after February 28, 1986, that are accounted for under either the percentage of completion-capitalized cost method or the percentage of completion method, it must attach a statement to Form 1120-S showing the information required in items (a) and (b) of the instructions for lines 1 and 3 of Part II of Form 8697. Also, the deduction is limited to the property's adjusted basis at the end of the year as figured for the AMT. Report each shareholder's share of the gain eligible for section 1045 rollover on Schedule K-1. Table 1 Taxpayer Burden for Entities Taxed as Partnerships, Table 2 Taxpayer Burden for Entities Taxed as Taxable Corporations, Table 3 Taxpayer Burden for Entities Taxed as Pass-Through Corporations. 535 for more information. Report these expenses on Schedule K, line 16c. Just set up the ECR payroll items and expense account to be able to track the eligible wages for the tax credit. Enter the Total wages before any reduction. Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). 535 for details. An S corporation without AE&P doesn't need to maintain the AAA in order to determine the tax effect of distributions. If the corporation has expenditures from more than one rental real estate activity, identify on an attachment to Schedule K-1 the information and amounts for each separate activity. If the corporation uses a third party to make deposits on its behalf, they may have different cutoff times. See Section 263A uniform capitalization rules , earlier, for more information. Form 8941, Credit for Small Employer Health Insurance Premiums. 1167, General Rules and Specifications for Substitute Forms and Schedules. Report these dividends to shareholders on Form 1099-DIV. Generally, the installment method can't be used for dealer dispositions of property. Depending on the relevant facts and circumstances, there may be more than one reasonable method for grouping the corporation's activities. For a net long-term capital gain (loss), also identify the amount of the adjustment that is collectibles (28%) gain (loss). Gross receipt reduction standards is various for 2020 and also 2021, yet is measured versus the current quarter as compared to 2019 pre-COVID quantities . Recoveries of tax benefit items (section 111). Guarantees of employee stock ownership plan (ESOP) debt. 1120s with Employee Retention Credit. See section 194(c) for a definition of reforestation expenditures and qualified timber property. However, if the corporation is reporting gain on the installment method for a section 1250 property held more than 1 year, see the next paragraph. The attached group activity description must be sufficient for the shareholders to determine if their other activities qualify to be added to any groups provided by the corporation. See Distributions , later, for definitions and other details. For example, if the corporation has more than one rental real estate activity, identify the amount from each activity. If the corporation wants to forego distributions of PTEP, it may elect to do so with the consent of all its affected shareholders (section 1368(e)(3)(B)). To use the same-day wire payment method, the corporation will need to make arrangements with its financial institution ahead of time regarding availability, deadlines, and costs. The amount by which qualified dividends are attributable to PTEP in annual PTEP accounts of a person other than the S corporation (for example, a shareholder) is not relevant for purposes of determining the qualified dividends to be entered on line 5b. Accumulated Earnings and Profits, Instructions for Form 1120-S - Additional Material, Agriculture, Forestry, Fishing and Hunting, Support Activities for Agriculture and Forestry, Beverage and Tobacco Product Manufacturing, Petroleum and Coal Products Manufacturing, Plastics and Rubber Products Manufacturing, Nonmetallic Mineral Product Manufacturing, Computer and Electronic Product Manufacturing, Electrical Equipment, Appliance, and Component Manufacturing, Furniture and Related Product Manufacturing, Building Material and Garden Equipment and Supplies Dealers, Sporting, Hobby, Book, Musical Instrument, & Miscellaneous Retailers, Transit and Ground Passenger Transportation, Motion Picture and Sound Recording Industries, Broadcasting & Content Providers & Telecommunications, Data Processing, Web Search Portals, & Other Information Services, Activities Related to Credit Intermediation, Securities, Commodity Contracts, and Other Financial Investments and Related Activities, Insurance Carriers and Related Activities, Funds, Trusts, and Other Financial Vehicles, Professional, Scientific, and Technical Services, Accounting, Tax Preparation, Bookkeeping, and Payroll Services, Architectural, Engineering, and Related Services, Computer Systems Design and Related Services, Other Professional, Scientific, and Technical Services, Management of Companies (Holding Companies), Administrative and Support and Waste Management and Remediation Services, Waste Management and Remediation Services, Performing Arts, Spectator Sports, and Related Industries, Museums, Historical Sites, and Similar Institutions, Amusement, Gambling, and Recreation Industries, Religious, Grantmaking, Civic, Professional, and Similar Organizations, National Center for Missing & Exploited Children (NCMEC), Guidance on Waivers for Corporations Unable to Meet e-file Requirements, E-file for Business and Self Employed Taxpayers, Dispositions of property with section 179 deductions (code K), Special rules for certain corporations engaged in farming, Reducing certain expenses for which credits are allowable, Am I Required to File a Form 1099 or Other Information Return, Section 263A uniform capitalization rules, Determining the S corporations QBI or qualified PTP items, Treasury Inspector General for Tax Administration.