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This article applies to:

  • Product: GoSystem Tax RS
  • Return type: 1120 Corporation
  • Subject: Print requirements,Print requirements

Form 1120 print requirements

Form 1120, U.S. Corporation Income Tax Return, prints when you set the return type to 1120 in Organizer.
To print or calculate Form 1120, U.S. Corporation Income Tax Return:
  1. In Organizer, select
    General Information
    , then
    Basic Return Information
    .
  2. On the
    Entity Information
     tab, go to the
    Return/Entity Type
     section.
  3. Select
    1120 - U.S. Corporation
     for the
    Return type
    .
  4. Do a full recompute, then print.

Interest expense

When a consolidated return is subject to section 163(j) limitations, the application sets Form 1120, page 1, line 18 to the consolidated return's Form 8990, line 30 amount. This amount represents the Total current year business interest expense deduction. This creates a correct adjustment between the consolidated return amount and the sum of the member Form 1120 line 18 amounts.
The application instead sets Form 1120, line 18 equal to the total amount consolidated into
Organizer
Income and Deductions
Deductions
Interest expense TRC 41-500
 when either of the following applies:
  • You mark the
    Suppress automatic calculation
     option under
    Organizer
    Informational Forms
    Limitation on business interest expense
    Adjustments
    .
  • You answer
    No
     to Schedule K, question 24.
note
The application doesn't print detail statements for Form 1120, page 1, line 18 when Form 8990 prints.

Capital gain net income

Until detail for Schedule D is entered, Form 1120, Page 1 Line 8 pulls from the
Capital gain net income
 line in
Organizer
Income and Deductions
Income
.
Once detail for Schedule D is entered in
Organizer
Gains and Losses
Capital Gains and Losses
Capital Assets Sale Detail
, Line 8 pulls from the results of Schedule D in Tax Forms. Drill down on Form 1120, Page 1 Line 8 to find the calculation.
There are 2 options that affect the calculation for this line:
  • In
    Organizer
    Balance Sheet/M1-M2-M3
    Schedule M-3
    Schedule M-3
    Sch M-3 Options tab
    , select the checkbox to
    Calculate book/tax difference for capital loss and contributions on Sch M-3 of member of a consolidated group
    . This suppresses capital losses from carrying to Page 1 Line 8 in a parent/subsidiary binder.
    • Leave this checkbox clear if you want capital losses to display on Line 8 in member returns.
  • In
    Organizer
    Income and Deductions
    Income
    , the option to
    Carry Capital Loss to Page 1
     applies to Single Company or Top Consolidation binders only.
    • This option transfers capital loss to Form 1120, Page 1 Line 8 even when the return is at a loss.

Net operating Loss

The Net Operating Loss (NOL) calculates automatically based on the type of NOL and the Type of Entity.
For Non-SRLY Loss:
  • Enter the information in a Parent, Subsidiary, Division, or Single Company binder/locator in
    Organizer
    Income and Deductions
    Deductions
    Net Operating Loss
    Non-SRLY tab
    .
  • Enter the NOL in both the
    Original NOL
     and
    Carryover to...
     columns by year.
    note
    The
    Original NOL
     is the actual amount from the loss year and the
    Carryover to...
     represents the available amount. If none of the NOL has been used previously, these columns will have the same amount.
    Carryover to...
     amounts need to be entered for NOL to generate in Tax Forms and in statement detail.
  • For consolidated returns, the available NOL consolidates, but the limitation will only apply in the Top Consolidation. Form 1120, Page 1, Line 29a will only populate in the consolidation for Non-SRLY NOL.
    tip
    Once you calculate the actual SRLY NOL deduction on your consolidated Form 1120,
    1. Go back to the member return where the available NOL was entered.
    2. Go to
      Organizer
      Income and Deductions
      Deductions
      Net Operating Loss
      Non-SRLY tab
      .
    3. Enter the actual NOL utilized in the
      Parent or Subsidiary Utilization
       column. This will make sure the correct available NOL transfers over to next year's return.
For SRLY NOL:
  • Enter the information in a Parent, Subsidiary, or Single Company binder/locator in
    Organizer
    Income and Deductions
    Deductions
    Net Operating Loss
    SRLY tab
    .
  • Enter the NOL in both the
    Original NOL
     and
    Carryover to...
     columns by year.
    note
    The
    Original NOL
     is the actual amount from the loss year and the
    Carryover to...
     represents the available amount. If none of the NOL has been used previously, these columns will have the same amount.
    Carryover to...
     amounts need to be entered for NOL to generate in Tax Forms and in statement detail.
  • For consolidated returns, the limitation is applied at the legal entity level and the NOL deduction is applied to the member's return on Form 1120, Page 1, Line 29a. Any SRLY NOL deductions taken at the member level consolidate to the Top Consolidation. If the member is at a loss on Form 1120, Page 1, Line 28, even if the consolidation has income, no NOL deduction will be taken for the return.
For S 382 NOL:
  • Enter the information in a Parent, Subsidiary, or Single Company binder/locator in
    Organizer
    Income and Deductions
    Deductions
    Net Operating Loss
    S 382 tab
    .
  • Enter the NOL in both the
    Original NOL
     and
    Carryover to...
     columns by year.
    note
    The
    Original NOL
     is the actual amount from the loss year and the
    Carryover to...
     represents the available amount. If none of the NOL has been used previously, these columns will have the same amount.
    Carryover to...
     amounts need to be entered for NOL to generate in Tax Forms and in statement detail.
  • For consolidated returns, the limitation is applied at the legal entity level and the NOL deduction is applied to the member's return on Form 1120, Page 1, Line 29a. Any S 382 NOL deductions taken at the member level consolidate to the Top Consolidation. If the member is at a loss on Form 1120, Page 1, Line 28, even if the consolidation has income, no NOL deduction will be taken for the return.

Charitable contributions adjustment

Consolidated returns are only able to take deductions for contributions up to the limit, which is 10% of the total income. Therefore, a parent or subsidiary return may be presented in showing the total amount of contributions granted depending on the total income. This may be limited and show as an adjustment at the consolidated level.
A good way to identify the calculation is to drill into the charitable contributions on line 19. The workpapers will show the taxable income used to calculate the limitation. Taxable income doesn’t include:
  • contribution deductions
  • Domestic Production Activity Deduction
  • special deductions
  • NOL Carrybacks
  • carryback of net capital losses
It will generally match the total income calculated. This can also be found using the statement detail in print.

Contribution deductions

Line 19 on Form 1120 Page 1 doesn't populate automatically in the following scenarios:
Taxable income amount
  1. Go to
    Tax Forms
    Federal
    1120-US Corporation Income Tax Return
    1120-US Corporation Income Tax Return
    Page 1
    Line 28 Taxable Income before net operating loss deduction and special deductions
    .
  2. Review the taxable income amount. If the amount is 0 or negative, Line 19 will remain blank. Special deductions can't reduce taxable income lower than 0.
Contribution amounts
  1. Go to
    Tax Forms
    Federal
    1120-US Corporation Income Tax Return
    1120-US Corporation Income Tax Return
    Page 1
    Line 19 Charitable Contributions
     and drill down to review the amounts.
  2. Correct any contribution amounts that calculate to a negative total.
  3. Alternatively, use the override field by going to
    Organizer
    Income and Deductions
    Deductions
    Detail
    Contributions deduction (Override)
     and enter the total amount.

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