1120-US: Tracking prior C Corporation losses for S Corporation built-in gain tax (FAQ)

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Question

Does UltraTax/1120 track the prior C Corporation losses used to offset the S Corporation built-in gain tax?

Answer

UltraTax/1120 tracks the prior C Corporation net operating loss, capital loss, and general business credit carryovers in the S Corporation client. Enter the prior C Corporation carryover information in the applicable screen in the Carryovers folder. UltraTax/1120 transfers this information to the respective carryover worksheet in the D folder.

Enter the total amount of prior C Corporation carryovers that is available to offset the S Corporation built-in gain tax in the Built-In Gains (S Corp) section of Screen D. The amounts entered in these fields should agree to the remaining C Corporation carryover available at the beginning of the year.

UltraTax/1120 reflects the amount of C Corporation carryover used to offset the S Corporation built-in gain tax in the applicable carryover worksheet in the D folder.

Related topic: 1120-US: Built-in gain tax calculation for S Corporations FAQs

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