Drake Software User's Manual Tax Year 2011 Supplement: S ...

What’s New in Drake for S CorporationsDrake Software User’s Manual SupplementMulti-State Apportionmenttional information (income reported on Form 1065, Schedule K-1); also includesthe Schedule K – Most Common Items previously included on screen 3.• DED — Includes all deduction items reported on Form 1120S, page 1, lines 7through 19, that do not require a separate schedule or form (Form 8846).• 4 — Includes additional tax amounts, tax payments, and data entry fields for theexcess net passive income tax calculation.Screens 3 and TAX have been eliminated from the 1120S package.Previously, in order to prepare a multi-state return in Drake—for a company doingbusiness in more than one state—you had to go to each individual state’s screens andenter its sales, payroll, and property factors. Drake would then calculate the apportionmentfactor on that state’s tax form.With the new APPT screen, you can enter the apportionment information for all statesin one global location. The link to the APPT screen can be found on the States tab, oryou enter APPT in the selector field and press ENTER. (See “Multi-State Apportionment”on page 16.)Cost of Goods Sold (Form 1125-A)In years past, Schedule A, Cost of Goods Sold, was located on page 2 of Form 1120S.Beginning with tax year 2011, entries on screen A produce a separate form, Form1125-A, Cost of Goods Sold.8609 ScreenThe 8609 screen (for Form 8609, Low-Income Housing Credit Allocation and Certification)has been reorganized for easier data entry. Among the changes:• Fields required for both Form 8609 and Form 8609-A are now separated on thescreen from the other information fields.• Other fields for Form 8609-A are now located in the middle of the screen.• Other fields for Form 8609 are now located in the bottom half of the screen.• Screen 8586 has been removed from the program. The program will generateForm 8586, Low Income Housing Credit, depending on entries made to screens8609, K1P, and K1F.Schedule K Screen ChangesThe screens for Schedule K, Shareholders’ Pro Rata Share Items, have been changedfor more efficient data entry. Changes include:• If a form is required for a particular line, the corresponding field has beenreplaced with a link to the screen for the required form. For example, an entry online 10, “Other Income,” might require that Form 6781, Gains and Losses From2 Tax Year 2011