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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12472
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Do you have a sample filled out form 8936 as it would appear

Customer Question

do you have a sample filled out form 8936 as it would appear with a s-corporation?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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I've looked high and low and cannot find an example, so I'll opt out after providing this. Understanding the function of the three parts of the form sometimes helps

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Part I calculates your tentative credit amount, which, typically, the manufacturer will have provided with its certification.

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If the vehicle satisfies the at least the minimum requirements, the credit starts at $2,500.

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Then, if the vehicle has at least a 5 kilowatt-hours of capacity, you increase the credit by $417, plus an additional $417 for each kilowatt-hour of capacity your vehicle has in excess of 5 up to a maximum of $7,500.

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Then, after calculating your tentative credit in the first part of Form 8936,part I ...

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the remaining two parts allocate the credit between your business in Part II

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and personal use of the vehicle in Part III.

Customer: replied 1 year ago.
can you help me I have Form 8936 that reflects a full 7,500 credit, 80% for business and 20% for personal. How do I report this on a Form 1120-s?
Expert:  Lane replied 1 year ago.

I know that it goes on schedule K and then gets apportioned to shareholders via ownership% and goes to K-1 ... let me see if I can find an example

Expert:  Lane replied 1 year ago.

My bet is that it's line 13g ... (for the business use piece) but I'll be honest ... I haven't done an 1120S that used the credit ... but from looking at the instructions, that has to be it

Expert:  Lane replied 1 year ago.

Yep in the 1120S instructions we see this:

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Schedule K­1. Enter in box 13 of Schedule K-1 each shareholder's pro rata share of the credits listed above.

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and one of the MANY credits listed above is"Qualified plug-in electric drive motor vehicle credit (Form 8936)"

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and ALL of those credits (running from page p32 to p33) are listed as "line 13g other credits."

Expert:  Lane replied 1 year ago.

Then if you'll look at the instructions for the 8936 instructions, page 2, you'll see:

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Line 13

Enter total qualified plug-in electric drive motor vehicle credits from: Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., box 15 (code P); and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc., box 13 (code P). Partnerships and S corporations must always report the above credits on line 13.

Expert:  Lane replied 1 year ago.

Did that help?

Expert:  Lane replied 1 year ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks

Lane