Create an S Corp Comparison plan

Create a new S Corp Comparison plan

Choose
File
, then
New
. Create a new S Corp Comparison plan when importing data from UltraTax/1040 by selecting the
New Plan
option in the
Import Client Data
window.
Mark the
S Corp Comparison
checkbox in the
Options
group box and select
OK
.
note
A green border appears after you mark the checkbox. Planner CS guides you through the process of creating an S Corp Comparison plan.
Enter a
Plan Year
in the
Required Information
group box.
Complete any other necessary information, and select
OK
.
When the new plan opens, the
S Corp Comparison Diagnostics
window displays. Complete the following steps for each of the data-entry items displayed in this window.
note
Once you complete the data-entry for each item,
Yes
displays in the Completed column.
Each time you select the
Main
button, Planner CS automatically displays the
S Corp Comparison
tab and the
S Corp Comparison Diagnostics
window.
To reopen this window if closed, choose
View
,
Diagnostics
, then
S Corp
comparison, or right-click in a field and choose
S Corp Diagnostics
.
Step 1: An activity must be selected as the S Corp activity.
Select the
Go to Activities
button.
In the
Business Activities
window, create a new activity, and mark the
Sch E – Ptnrshp/S Corp
checkbox to designate it as an S Corporation.
Mark the
S Corp for comparison
checkbox in the
S Corp Comparison Plan
group box.
Select the
Data Entry
button, and enter the income and expenses of the business in the S Corp alternative.
note
Include wages paid to the taxpayer-owner of the S Corporation as an expense. You can enter operating income of the corporation net of the wages expense, or you can enter wages paid to the taxpayer as a separate line item in the
Other expenses
field.
For tax years 2018 through 2025, enter the net income of the S Corporation that is eligible for the qualified business income deduction in the
Business income or loss
field on the Qualified Busn Inc tab.
The net income of the activity transfers to the
S Corporation net income
field on the
Main
,
S Corp Comparison
tab
The Sole Proprietor alternative isn't pertinent for this business activity, so data entry isn't available for that alternative.
Step 2: An activity must be selected as the other business entity.
Select the
Go to Activities
button.
In the
Business Activities
window, create a second business activity, representing a non-corporate entity.
Mark the
Other business entity
checkbox in the
S Corp Comparison Plan
group box.
Select the
Data Entry
button, and enter the income and expenses of the business in the Sole Proprietor alternative.
note
For tax years 2018 through 2025, enter the net income of the business that is eligible for the qualified business income deduction in the
Business income or loss
field on the
Qualified Bus Inc
tab.
The net income of the activity transfers to the
Sole proprietor net income
field on the
Main
,
S Corp Comparison
tab.
The S Corp alternative isn't pertinent for this business activity, so data entry isn't available for that alternative.
Step 3: An employer must be selected for S Corp wages on the W2 window.
Select the
Go to Wages
button.
On the Wages tab, double-click a field in the S Corp alternative to open the
W-2 Information
window for the taxpayer or spouse.
Add the S Corporation as an employer by entering wages and marking the
S Corporation wages
checkbox.
Select
OK
.
note
These wages transfer to the
S Corporation wages
field on the
Main
,
S Corp Comparison
tab.
The employer’s and the employee’s share of Social Security and Medicare taxes transfer to the
Payroll Taxes
section of the
S Corp Comparison
tab.
Step 4: Enter other expenses (optional).
Select the
Go to Other Expenses
button.
Your cursor is now located in the
Other expenses
field on the
S Corp Comparison
tab. In this field, you can enter administrative expenses that may differ between the two alternatives, such as administrative, payroll, and tax preparation costs.
To complete the comparison plan, enter all other items of income, deductions, and credits as related to both plan alternatives. You can also attach a resident state and multiple nonresident states to the plan to include them in the analysis.

Convert an existing plan to an S Corp Comparison plan

With the existing plan open, choose
File
, then
Plan Information
to open the
Plan Information
window.
Mark the
S Corp Comparison
checkbox in the Options group box.
note
This checkbox is only available if the plan includes at least two alternatives.
Select
Yes
in the window that opens.
In the
Select Alternatives and Year
window that opens, select the
Year
, the alternative for the S Corp activity, and the alternative for the other business activity, and then select
OK
.
Select
OK
in the window that opens.
Select
OK
to close the
Plan Information
window and display the
S Corp Comparison Diagnostics
window. To complete the analysis, refer to steps from 5 through 6 in the previous procedure.

Convert an S Corp Comparison plan to a regular plan

Interpret results

Net income from the taxpayer-owned S Corporation
Wages paid by the S Corporation to the taxpayer-owner
The corporation's share and the owner-employee's share of FICA taxes
Other income, deductions, and tax credits related to the alternative

Net income from the business (operating as a Schedule C, Schedule F, or a partnership)
Self-employment tax and the self-employment tax deduction
Other income, deductions, and tax credits related to the alternative

Print an S Corp Comparison plan