Business Tax Questions
16 articles
Articles in Business Tax Questions
Where is the Section 179 Deduction in a Passthrough Return?
Section 179 of the tax code allows a business to deduct the cost of certain property as an expense when the property is first placed in service.
Business Return Filing Penalties and Interest
The failure to file penalty applies if the business doesn't file its tax return by the due date (including extensions).
Form 6765 - Credit for Increasing Research Activities for a Pass-Thru Entity
Under IRC section 174 a business can elect to deduct research and experimental expenses rather than capitalize them.
Can Tax Processors Plus Support assist with Schedules L, M-1, and M-2?
Tax Processors Plus Support cannot assist with reconciling the balance sheet on Schedule L in Forms 1065, 1120-S, and 1120.
Owner's Draw and Guaranteed Payments
Owner's draw or draw payment is a colloquial term rather than an IRS term, defined as a distribution of cash or property an owner or partner takes out of a pass-through entity such as a sole proprietorship, partnership, or S corporation for their personal use.
What is the PBA Code?
PBA is the abbreviation for Principal Business Activity Code.
2020 PPP Loans – How do they impact tax returns?
Throughout the 2020 Tax Season taxpayers and preparers questioned how PPP loans were to be reported on tax returns.
Business State Extension Information
Click the state for information about business returns extensions.
Corporation Returns - Printing Schedule L (Balance Sheet), Schedule M-1, and Schedule M-2
Generally corporations with total receipts and total assets at the end of the tax year totaling less than $250,000 are not required to complete Schedules L, M-1 and M-2, and if the forms aren't required then Tax Processors Plus won't print them with the return.
Form 966 - Corporate Dissolution or Liquidation
A corporation or a farmer’s cooperative must file Form 966, Corporate Dissolution or Liquidation if it adopts a resolution or plan to dissolve the corporation or liquidate any of its stock.
Form 1120-H (Homeowners Associations)
Income Tax Return for Homeowners Associations, you'll need to first create Form 1120.
Changing A Business Return From Calendar Year to Fiscal Year
Do not enter any dates in this field if this is a calendar year return.
Passive Activity / Nonpassive Activity
Passive activity is any rental activity or any business in which the taxpayer does not materially participate.
Creating Schedule K-1 in a Business Return
Schedule B is used to determine the amounts to be distributed to the beneficiary(ies).
Where to Enter Amortization - Business Returns
Amortization can be entered in Tax Processors Plus Desktop by accessing the Form or Schedule that it is associated with.
How Does A Corporation Request To File As An S Corporation?
To change an entity's filing status from a C Corporation (filing Form 1120) to an S Corporation (filing Form 1120S), the entity will file Form 2553 - Election by a Small Business Corporation .