Can I override the Code "AC" on line 17 of a S Corp K-1?

Forum|Forum|5 years ago
February 5, 2021
2 replies
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Does anyone know if an installment sale is a reportable transaction on Form 8886?

ProConnect Tax

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Best answer by PhoebeRoberts

If you've got more than $5 million of deferred proceeds across all of your installment sales, you have to calculate interest on the deferred tax. If this applies to you, let me know and I can find you a code section reference and an explanation of how to do the calculation.

An installment sale is not necessarily a reportable transaction for Form 8886 purposes.

Box 17 Code AC is a generic "other information" code, and it's unlikely that it requires overriding.

sjrcpa

Level 15

Only if it otherwise fits into one of the listed transaction categories.

The more I know the more I don’t know.

PhoebeRoberts

Answer

Intuit Community Champion

If you've got more than $5 million of deferred proceeds across all of your installment sales, you have to calculate interest on the deferred tax. If this applies to you, let me know and I can find you a code section reference and an explanation of how to do the calculation.

An installment sale is not necessarily a reportable transaction for Form 8886 purposes.

Box 17 Code AC is a generic "other information" code, and it's unlikely that it requires overriding.