WendyN2,
Perhaps you can more directly answer the question. In particular, what should be done in the Turbo Tax data entry for Line 17 Code AC - Gross Receipts for Section 448(c)?
My understanding is that the gross receipts data for the last 2 or 3 years in the Statement is to be used to determine if the taxpayer is subject to section 163(j) and required to file the form 8990. If the business providing the K-1 is classified a "Small business taxpayer" that meets the "Gross receipts test" then the taxpayer is not subject to section 163(j) and not generally required to file the form 8990. That is, in that case, the data in the statement for AC is for informational purposes only. At that point how shall the data be entered in Turbo Tax?
- Not entered at all?
- Should the Shareholder Amounts over the 2 or 3 years be averaged and that average be entered.
- Should the most recent year Shareholder Amount be entered?
- Should I "Add Supporting Details" to this line? If so, what should be entered? If you just enter a sine with an amount for those 2 or 3 years the Supporting Details" page totals the amounts. This does not seem appropriate.
- Something else?
Please reply with guidance.
