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Shareholder Information > Other Info tab
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Use this tab to enter information for Form 1120-S, each shareholder's Schedules K-1, shareholder basis information, and shareholder transmittal letters.
Other information
Entity
By default, the shareholder is listed as an individual. If the shareholder is not an individual, select the correct entity type from the attached dropdown list.
Section 179 is allocated to shareholders listed as an individual or grantor trust/QSST. A section 179 deduction isn't allocated to a shareholder listed as an estate or trust.
This field is also used to complete the state tax return.
Complete the fields in the Schedule B-1 tab if the registered owner of the S Corporation stock isn't the same as the beneficial owner of the stock. The beneficial owner is the person or entity that controls the stock and reaps the benefits of stock ownership.
Salutation
Enter a unique salutation for the shareholder in this field. For example, the shareholder's first name. The transmittal letter already includes
Dear
in the salutation, therefore, don't enter Dear
in this field.Final K-1
Mark this checkbox if this is the shareholder's final K-1. UltraTax CS won't proforma the shareholder to the following year.
important
This checkbox will already be marked on the Schedule K-1 if you previously marked the
Final return
field in the 1120 screen, or if you entered a new date column into the Change of Ownership window but left the number of shares blank.Rounding
Mark this checkbox if the shareholder is designated as the rounding shareholder. When you mark this checkbox, UltraTax CS allocates all rounding adjustments to the shareholder.
note
UltraTax CS allows 1 rounding shareholder for the corporation.
Tax matters person
Mark this checkbox if the shareholder is the S Corporation's tax matters person. If option 3 or 4 is selected in the
Heading for shareholder transmittal letter…
field in the Letter screen, UltraTax CS uses this information for the shareholder transmittal letter.note
UltraTax CS allows 1 shareholder to be designated as the tax matters person for the corporation.
Shareholder is a 1040 client
Mark this checkbox to request the transmittal letter for shareholders for whom you prepare individual 1040 returns. If this checkbox is not marked, UltraTax CS defaults to the standard transmittal letter for S Corporation shareholders.
UltraTax CS won’t print the Schedule K-1 instructions in the Shareholder Package for shareholders marked as a 1040 client. If you want to print the Schedule K-1 instructions for shareholders who are 1040 clients, select
Setup
, 1120 Corporation
, then the Federal
tab. Select the Other Return Options
button and mark the Print Schedule K-1 instructions when shareholder is a 1040 client (S Corp)
checkbox in the Return Presentation
tab.Shareholder is an officer
Mark this checkbox if the shareholder is an officer of the S Corporation. UltraTax CS transfers the shareholder's demographic information to the statement window for the
Officer's compensation
field on the Inc screen in the Income & Deductions folder.Print shareholder's letter in Spanish
Mark this checkbox to print the shareholder's transmittal letter in Spanish.
Exclude shareholder from number of shareholders at the end of tax year
Mark this checkbox to exclude the shareholder from the total number of shareholders in the corporation at the end of the tax year that prints on Form 1120-S, Page 1, Item I. Mark this checkbox if the corporation has shareholders who are members of a family and should only count as 1 shareholder.
Electronic filing
Override name control
The IRS's 1120 electronic filing program needs a name control field for the shareholder's name. UltraTax CS displays the calculated value in this field. Due to the complicated nature of the name control specifications, UltraTax CS may have an issue correctly calculating the name control fields. If this issue happens, you can override the calculated value in this field, if necessary.
Allocable items
Shareholder health insurance (Not included on shareholder's Form W-2)
Under Notice 2008-1, for a two-percent shareholder-employee to deduct the amount of the health insurance premiums under IRC Section 162(l), the S Corporation needs to report the health insurance premiums paid or reimbursed as wages on the two-percent shareholder-employee's Form W-2 in that same year. In addition, the shareholder needs to report the premium payments or reimbursements from the S Corporation as gross income on their Form 1040.
However, if the health insurance premiums were not included in the shareholder's Form W-2, and you want to show the premiums on the Schedules K and K-1, enter the amount in the
Shareholder health insurance
field for each shareholder.UltraTax CS/1120 transfers the shareholder health insurance to Schedules K and K-1 based on the option selected in the
Shareholder health insurance shown on Schedules K and K-1
field in Screen K. If you enter 1
in this field or if the field is blank, UltraTax CS/1120 transfers the amount to Nondeductible expenses on Schedules K and K-1. If you enter 2
in this field, UltraTax CS/1120 transfers the amount to other items and amounts on Schedules K and K-1.If the health/medical insurance premiums are included in the shareholder's Form W-2, you should not enter the amount in the
Shareholder health insurance
field, unless you want to show the health insurance premiums as Other items and amounts on Schedules K and K-1. This is done by entering 2
in the Shareholder health insurance shown on Schedules K and K-1
field in Screen K.Distributions including cash (Force)
UltraTax CS allocates total distributions entered in the
Distributions
field in the Ms screen on a pro-rata basis to each shareholder. If the distributions were not pro-rata, use this field to force the amount of the distribution printed on the shareholder's K-1. You may enter zero in this field, if necessary.note
If you use this field, you need to enter the distributions for all shareholders on this window.
Deemed dividend (Force)
UltraTax CS allocates total deemed dividends entered in the
Deemed dividend elected under Regulation 1.1368-1(f)(3)
field in Screen Ms to shareholders based on their end-of-year ownership percentages.If you want to allocate deemed dividends to shareholders using a different method, use this field to force the amount of deemed dividends printed on the Deemed dividend election statement for the shareholder. This amount will also be displayed as an Other stock increase in the shareholder's basis worksheet. You will also need to enter an amount in this field if the shareholder doesn’t have any beginning-of-year shares entered in the Shareholder tab. The sum of the amounts entered for all shareholders needs to equal the amount entered in the
Deemed dividend elected under Regulation 1.1368-1(f)(3)
field in Screen Ms.Supplemental information
This statement window is provided for supplemental information specific to each shareholder. Use this statement window for items that are not pro-rata. If you have pro-rata items that you need to report to each shareholder, use Section B in Screen KSep in the Schedule K folder. The information you enter in this statement window prints in the K-1 statements for Box 17 for Other information.
Shareholder basis
Shareholder Basis
Select this button to open a window where you can enter stock basis, loan basis, and suspended loss information.