Drake Tax – 1120: Line 5 Interest

Interest income can be entered in the following locations, as applicable:

• INC screen

  • Line 5 – Interest income

  • Tax-exempt interest line – Flows, as applicable, to Schedule K, line 9 and to Schedule M-1, line 7. Override fields are available on screens K and M1, if needed.

• 6252 screen – The Do NOT carry interest to Form 1120 check box on the 6252 screen prevents amounts from Form 6252 from flowing to the return.

• 8912 screen – Carries to line 19

• K1P screen – Used if the corporation received a Schedule K-1 from a partnership

• K screen – Line 9 (override field).

Review the field help (press F1) for line 5 on screen INC and see the 1120 Instructions for details about reporting interest on Form 1120.

Drake Tax 2016 and Prior

In Drake16 and prior, to carry interest from the 6252 screen to the 1120, line 5, select the Carry to 1120 option next to the interest fields.