New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

How can I make the election for a deemed dividend?

Answer

UltraTax CS automatically prints the election to distribute a deemed dividend when an amount is entered in the Deemed dividend elected under Regulation 1.1368-1(f)(3) field in Screen Ms in the Balance Sheet folder. This election is not a traditional election statement in that it is not viewable or editable, and is not selected in Screen Elect.

UltraTax CS treats the amount entered in the Deemed dividend elected under Regulation 1.1368-1(f)(3) field as a distribution paid from accumulated E&P and reduces the Accumulated Earnings and Profits (AE&E) account. The Additional Paid-in Capital account at the end of the year is increased by the same amount, as well as the shareholder's stock basis in the S Corporation.

Was this article helpful?

Yes No

Submit