Income or net gain reported on Form 8825, lines 2, 19, and 20a. Also, if the corporation converts to C corporation status in a subsequent year, it will be required to report its appropriated and unappropriated retained earnings on separate lines of Schedule L of Form 1120. Reduce the AAA determined without regard to any net negative adjustment for the tax year (but not below zero). Report the corporation's section 951A inclusion and its shareholders' pro rata shares of the section 951A inclusions using code E. See Form 8992, Part II, line 5. See, If the corporation has more than one rental, trade, or business activity, identify on an attachment to Schedule K-1 the amount of section 179 deduction from each separate activity. See Temporary Regulations section 1.469-2T(c)(3) for more information on portfolio income. The option to e-file doesn't, however, apply to certain returns. See Regulations sections 1.163-7, 1.446-2, and 1.1273-2(g) for details. Because each shareholder makes the election to deduct these expenses, the corporation shouldn't capitalize them. If deductible losses and expenses include the fair market value (FMV) of certain contributed property (discussed earlier), further adjust AAA by adding back the FMV of the contributed property and subtracting instead the property's adjusted basis. Report each shareholder's pro rata share of unrecaptured section 1250 gain from the sale or exchange of the corporation's business assets in box 8c of Schedule K-1. Rental real estate activities are also reported on Form 8825. If the due date falls on a Saturday, Sunday, or legal holiday, the payment is due on the next day that isn't a Saturday, Sunday, or legal holiday. Include only interest incurred in the trade or business activities of the corporation that isn't claimed elsewhere on the return. Also attach the statement required under Regulations section 1.1(h)-1(e). If you haven't filed Form 2553, or didn't file Form 2553 on time, you may be entitled to relief for a late-filed election to be an S corporation. Corporate: Open Form 1120, p1-2. Because the corporation won't have information regarding all of a shareholder's activities, it must identify all corporate activities meeting the definitions in items (2) and (3) as activities that may be subject to recharacterization. See section 162(q). If the S corporation is a patron of a specified agricultural or horticultural cooperative, the S corporation must provide the pro rata share of QBI items and W-2 wages allocable to qualified payments from each trade or business to each of its shareholders on Statement C, or a substantially similar statement, and attach it to each Schedule K-1 so each shareholder can figure their patron reduction under section 199A(b)(7).

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