Screen GBC-2 - Forms 6765, 8820, 8826, 8830 (1120)

Overview

The GBC-1, GBC-2, GBC-3, GBC-4, GBC-5, and GBC-6 Screens are available in the Farm, Farm Rental, and Rent & Royalty folders and are activity-based screens. For miscellaneous non-activity related credit data entry, the screens are also part of the Credits folder.
Enter the passive credit carryovers on the PALCr or PALCrESB Screens in the appropriate activity folder.

Form 6765 - Credit for Increasing Research Activities

The
Form
,
Unit
, and
Description
fields in this screen are automatically completed using the information particular to the individual activity. Use this section to enter information to calculate Form 6765 - Credit for Increasing Research Activities.
Enter the qualified organization base period amount. This amount is not eligible for the basic research credit, but can be treated as contract research expenses subject to the limitation.
Enter the wages for qualified services. Do not include wages used in figuring the work opportunity credit.
Enter the average annual gross receipts (less returns and allowances) for the four tax years preceding the tax year for which the credit is being calculated. Gross receipts should be annualized if part of a short-year.
If a foreign corporation, enter only gross receipts that are effectively connected with a trade or business in the United States or a U.S. possession.
If all or a portion of the expenses that qualify for the research credit were capitalized, enter the amount of the research credit that is related to capitalized expenses. The application increases the amount of Other deductions on the main return unless the corporation has made an election to reduce the credit by marking the
Elect reduced credit under Section 280C(c)
field in the GBCGen Screen.
Enter the qualified wages used to determine the Credit for Increasing Research Activities for each employee that was also included in the calculation of Form 8932, Credit for Employer Differential Wage Payments.
Enter the portion of the Credit for Increasing Research Activities you are electing as a payroll tax credit. Do not enter more than $250,000. The
Qualifies as eligible small business
field in the GBCGen Screen must also be marked to calculate Form 6765, Page 2, Section D.
For a C Corporation, the amount of carryover credit will be reduced by the amount that is applied to the payroll tax credit. This is reported on the General Business Credit Carryover / Carryback Detail Worksheet.
For an S Corporation, the amount of credit reported on Form 1120-S, Schedule K, Line 13g will be reduced by the amount that is applied to the payroll tax credit.

Form 8820 - Orphan Drug Credit

Enter the qualified wages used to determine the Orphan Drug Credit for each employee that was also included in the calculation of Form 8932, Credit for Employer Differential Wage Payments.
If all or a portion of the expenses that qualify for the orphan drug credit were capitalized, enter the amount of the orphan drug credit that is related to capitalized expenses. The application increases the amount of Other deductions on the main return.

Form 8826 - Disabled Access Credit

Enter the total eligible access expenditures paid or incurred during the tax year. For purposes of the credit, these expenditures are amounts paid or incurred by an eligible small business to comply with applicable requirements under the American With Disabilities Act of 1990 as in effect on November 5, 1990.
Enter the portion of the credit calculated that has been claimed as a deduction in figuring taxable income. This amount decreases other deductions on the main return.
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