The S Corp Comparison plan is a one-year, two-alternative plan that you can use to compare the tax results of operating a business as a Subchapter S Corporation in one column, and as a different entity, such as a sole proprietorship or partnership, in the other column. You’ll view the results of the analysis on the S Corp Comparison tab, which highlights the specific differences pertaining to each entity.
You can also easily alternate between an S Corp Comparison plan and a regular tax plan by marking or clearing the S Corp Comparison checkbox in the Plan Information dialog. When you convert one plan to the other, your data and tax calculations remain the same—the S Corp Comparison plan simply presents the results in a different way.
Video overview
Create a new S Corp Comparison plan
Use the following procedure to create a new S Corp Comparison plan.
- Choose File > New. You can also create a new S Corp Comparison plan when importing data from UltraTax/1040 by clicking the New Plan option in the Import Client Data dialog.
- Mark the S Corp Comparison checkbox in the Options group box and click OK.
Note: A green border appears after you mark the checkbox. Planner CS uses green borders and shading to guide 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 click OK.
- When the new plan opens, the S Corp Comparison Diagnostics dialog displays. Complete the following procedure for each of the data-entry items displayed in this dialog.
Notes
- Once you complete data-entry for each item, Yes displays in the Completed? column.
- Each time you click the Main button, Planner CS automatically displays the S Corp Comparison tab and the S Corp Comparison Diagnostics dialog.
- To reopen this dialog if closed, choose View > Diagnostics > 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
Step 2: An activity must be selected as the other business entity
Step 3: An employer must be selected for S Corp wages on the W2 dialog
- To complete the comparison plan, enter all other items of income, deductions, and credits as applicable 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
Use the following procedure to convert an existing plan to an S Corp Comparison plan.
- With the existing plan open, choose File > Plan Information to open the Plan Information dialog.
- 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.
- Click Yes in the dialog that opens.
- In the Select Alternatives and Year dialog that opens, select the Year, the alternative for the S Corp activity, and the alternative for the other business activity, and then click OK.
- Click OK in the dialog that opens.
- Click OK to close the Plan Information dialog and display the S Corp Comparison Diagnostics dialog. To complete the analysis, refer to steps 5-6 in the above procedure.
Note: Planner CS hides years and alternatives that are not relevant to the S Corp Comparison plan analysis. To unhide this data, see the following section.
Convert an S Corp Comparison plan to a regular plan
To convert an S Corp Comparison plan to a regular plan, clear the S Corp Comparison checkbox in the File > Plan Information dialog, and click OK. This unhides any hidden columns.
Interpret results
On the Main > S Corp Comparison tab, you can view the results of the analysis as a side-by-side comparison: operating the business as an S Corporation in the S Corp alternative, or as the other entity in the Sole Proprietor alternative.
The S Corp alternative includes the following amounts.
- 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 applicable to the alternative
The Sole Proprietor alternative includes the following amounts.
- 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 applicable to the alternative
The last field on this tab, Total Taxes and Expenses, contains the final result of the analysis. Use this field to compare the total tax results of operating each business.
Print an S Corp Comparison plan
To print an S Corp Comparison plan, choose File > Print Reports and click Print. By default, Planner CS prints the S Corp Comparison report and the Summary report for each attached state plan. Click the Print Selection button in the Print Reports dialog to select additional items to print.
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