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Federal input screens

Screen Inc - Income and Deductions (1120)

Income

Use the statement dialog to explain how gross receipts are determined if the corporation qualifies to use the nonaccrual experience method.
Use these fields to enter amounts required to complete Form 4797, Part IV, Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less. The application automatically adds the recapture amounts to the Other income statement.
Enter the amounts to calculate the section 179 recapture in the Section 179: Deduction allowable in prior years and Recomputed depreciation fields. The application transfers the amounts for Section 280F: Deduction allowable in prior years and Recomputed depreciation from the Page 1 and Cost of Goods Sold asset module.

Deductions

If you use  CS Professional Suite accounting applications that integrate with UltraTax CS, the application transfers the total officer compensation from the accounting application. This amount is not used in the return, but is displayed for informational purposes only.
Enter the gross amount of officer’s compensation before reduction for employment credit wages. The application automatically reduces the amount you enter in this field by the following current year amounts.
  • Form 5884 Work opportunity credit
  • Form 5884-A Employee retention credit
  • Form 8844 Empowerment zone employment credit
  • Form 8845 Indian employment credit
  • Form 8932 Employer differential wage payment credit
  • Form 8994 Employer credit for paid family and medical leave
The automatic reduction to officer compensation is done when you enter data in the
Officer’s compensation percentage
 or
amount
 fields for the respective credit form in the GBC-1, GBC-3, GBC-4, GBC-6, or GBC-7 screens in the Credits folder. If nothing is entered in the percentage or amount fields, the reduction for employment credit wages is not made for officer compensation.
The application updates the S Corporation shareholder’s demographic data when you enter X in the Shareholder is an officer field in View, Shareholder Information, then Other Info tab. The application includes the shareholder wages in the section 179 business income calculation. If all of the shareholders are not officers of the S Corporation, enter the total shareholder employee wages in the Total shareholder employee (S Corp / Force) field in the OthAsset screen.
The application transfers the officer compensation detail from the member clients to the consolidated C or S corporation client. Subsequent changes at the member level are not automatically reflected in the consolidated client. You will need to delete the data in the Officer’s compensation statement dialog in the consolidated client and select Done for the application to transfer the updated information from the member clients.
Enter the gross amount of salaries and wages before reduction for employment credit wages. The application automatically reduces the amount you enter in this field by the following current year amounts.
  • Form 5884 Work opportunity credit
  • Form 8844 Empowerment zone employment credit
  • Form 8932 Employer differential wage payment credit
  • Form 8994 Employer credit for paid family and medical leave
The automatic reduction to salaries and wages is not done when you enter data in the
Cost of labor percentage
,
Officer's compensation percentage
, or amount fields for the respective credit form in the GBC-1, GBC-3, GBC-5, or GBC-6 screens in the Credits folder. If nothing is entered in the percentage or amount fields, the reduction for employment credit wages is allocated to salaries and wages.
The application transfers the amount of lease inclusion from the asset module and subtracts the amount from the leased vehicle expenses entered in the
Rents
field.
Enter the amount of business interest expense, not including floor plan financing interest expense. UltraTax CS/1120 automatically updates this field based on the amount in the
Interest
field. If the
Section 1.163(j)-9 election was made for an excepted trade or business
field on the 1120 screen is blank, UltraTax CS/1120 sums the amounts in the
Business interest expense subject to limitation
fields and transfers the total to Form 8990, line 1.
Enter
0
 in the
Business interest expense subject to limitation
 field if the corporation has a disallowed business interest expense entered in the NOL screen in the Carryovers folder, and no current year interest expense.
Enter the amount of tax depletion from oil and gas properties in this field if you have tax depletion and have not entered depletion detail in the UltraTax CS/Oil & Gas module or if you want to force the calculated amount of oil and gas depletion.
If tax depletion from oil and gas properties is zero, enter zero in this field. An entry of zero is needed if you have book depletion but no tax depletion; you want the application to generate a Schedule M-1 depletion adjustment; and you do not want book depletion to transfer to the Depletion line on Page 1.
Enter the amount of tax depletion from properties other than oil and gas in this field. If tax depletion for properties other than oil and gas is zero and if there is book depletion, enter zero. The application generates a Schedule M-1 reconciling item for the difference between the book depletion amount for properties other than oil and gas (entered in Mc or Ms screen) and the amount of tax depletion for properties other than oil and gas. If this field is blank, the application does not generate a Schedule M-1 other depletion adjustment.
If you do not enter tax depletion for properties other than oil and gas, the application defaults to the amount in the
Depletion - other than oil and gas
field in the Mc or Ms screen, does not make a Schedule M-1 adjustment, and transfers the amount to the Depletion line on Page 1 of the return. Likewise, if you enter an amount and leave the
Depletion - other than oil and gas
field in the Mc or Ms screen blank, the application assumes that the amounts are the same and does not make a Schedule M-1 adjustment. The application makes a Schedule M-1 adjustment when amounts entered for tax depletion and book depletion are different.
Amounts are included in the pension or profit sharing custom paragraph that prints in the transmittal letter.
Enter 100 percent of the meal expense. UltraTax CS/1120 applies 50% limitation to the deductible portion of the meal expenses.
Enter 100 percent of the meals expense subject to the hours of service limitations of the Department of Transportation (DOT). UltraTax CS/1120 applies 80% limitation to the deductible portion of the meal expenses.

Section 277 Deductions (C Corp)

The application reduces Form 1120, line for Other deductions by the amount of member-related deductions (both current year and prior year excess) that exceed the member-related income for the current year.
Enter the cumulative total of unused excess deductions from prior years.
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