Royalty expenses go on Form 1120S, Schedule K, line 12d other
deductions (coded as royalty expense) and are allocated to the shareholders K-1,
line 12d.
To enter in Turbotax:
·
Open TurboTax Business, and go to the S corporation
return.
·
On the top right click on Forms
·
On the top left click on Open Form
·
In the search field type Form 1120S p3-5, then
click on Form 110S p3-5: Income Tax Return for an S corporation
·
Scroll down to Schedule K, line 12d, in the drop box under line F, in column Type: select
I - Deduction -royalty income
