Creating an S Corp Comparison plan

Alerts and notices

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.

  1. 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.
  2. 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.

  3. Enter a Plan Year in the Required Information group box.
  4. Complete any other necessary information, and click OK.
  5. 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.
    1. Click the Go to Activities button.
    2. In the Business Activities dialog, create a new activity, and mark the Sch E – Ptnrshp/S Corp checkbox to designate it as an S Corporation.
    3. Mark the S Corp for comparison checkbox in the S Corp Comparison Plan group box.
    4. Click the Data Entry button, and enter income and expenses of the business in the S Corp alternative.

      Notes

      • 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 is not applicable for this business activity, so data entry is not available for that alternative.
    1. Click the Go to Activities button.
    2. In the Business Activities dialog, create a second business activity, representing a non-corporate entity.
    3. Mark the Other business entity checkbox in the S Corp Comparison Plan group box.
    4. Click the Data Entry button, and enter income and expenses of the business in the Sole Proprietor alternative.

      Notes

      • 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 Busn 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 is not applicable for this business activity, so data entry is not available for that alternative.
    1. Click the Go to Wages button.
    2. On the Wages tab, double-click a field in the S Corp alternative to open the W-2 Information dialog for the taxpayer or spouse.
    3. Add the S Corporation as an employer by entering wages and marking the S Corporation wages checkbox.
    4. Click OK.

      Notes

      • 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.
    1. Click the Go to Other Expenses button.
    2. 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.
  6. 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.

  1. With the existing plan open, choose File > Plan Information to open the Plan Information dialog.
  2. 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.

  3. Click Yes in the dialog that opens.
  4. 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.
  5. Click OK in the dialog that opens.
  6. 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.

The Sole Proprietor alternative includes the following amounts.

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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