1120S, Box 17, Code AC Calculation, ATX

[G2R]

Anyone know how ATX calculates the 1120S, Box 17, Code AC (Gross receipts for section 448(c)).  I've tried to figure out what ATX is doing and for the life of me, cannot determine their method.  TIA

[jklcpa]

2 hours ago, G2R said:

Anyone know how ATX calculates the 1120S, Box 17, Code AC (Gross receipts for section 448(c)).  I've tried to figure out what ATX is doing and for the life of me, cannot determine their method.  TIA

Link to a Drake KB that should help; it describes the calculation and when  and why it is needed.

https://drakesoftware.com/Site/Browse/17113/1120S-Line-17-Code-AC-Change-Drake20-and-future#:~:text=Line 17%2C code AC on,for Section 448(c).

 

[G2R]

Thank you @jklcpa.  I also saw that information at one point in my research.  Unfortunately when I manually apply this method to a return I've done in ATX, what I calculate and what ATX calculate sis completely different. I cannot find where ATX explains themselves.  

[jklcpa]

Is there a schedule for details of other items to allocate to shareholders that relates to 1120S pg 4, Schedule K, Line 17d?

If not, when you add all of the amounts on the K-1s for that item, it doesn't add up to the amount of net sales on line 1 of the 1120S?

Is it possible that there are special allocation %s for this item being carried over from the prior year? Or did you hit an input line in error that is having some effect?

[G2R]

@jklcpa  You're a genius!  Yes there is! 

For anyone looking for this in the future, the rabbit hole map is:

• 1120S, pg 4, 17d (yes the greyed out field) and JUMP to Linked Field which takes you to:
• Line 17d, Sch K (1120S) - Other Items & Amts. Scroll to AC, and click the JUMP to Linked Field which takes you to:
• Line 13 (1120S) - Interest Expense.  Depending on how you answer the schedule B question, the "IRS Sec 448 Gross Receipts Test equation is explained. 

For the record, it's the preceeding three year average fo gross receipts OR the CY gross receipts. 

Thank you @jklcpa !!

[jklcpa]

Ah, glad to have helped solve the puzzle.