Drake Tax - 1040 - Form 8992

Data Entry

Entries for Form 8992 are located on the I1 screen on the Foreign tab. You must first complete the 5471 screen and any related or needed schedules before making entries on the I1 screen.

If both taxpayer and spouse are shareholders in the same foreign corporation, only one Form 5471 could be filed, however, certain related forms must be filed for each taxpayer. For example, they would have to file separate Schedule Is and Forms 8992. To create separate forms for a taxpayer and spouse, follow these steps:

1. Complete the 5471 screen with details about the foreign corporation, including Schedule I-1.

2. On the first SCHI screen, enter the primary taxpayer's name in Name of U.S. Shareholder and their SSN in the Identifying Number field. The Multi-form code for 5471 should be 1 and Multi-form code for 5471, Schedule I should be 1. Be sure to enter the U.S. shareholder's proration as it is used for several calculations.

3. Page Down to create a second SCHI screen for the spouse. Enter the secondary taxpayer's name in Name of U.S. Shareholder and their SSN in the Identifying Number field. The Multi-form code for 5471 should be 1 and Multi-form code for 5471, Schedule I should be 2. Be sure to enter the U.S. shareholder's proration as it is used for several calculations.

4. On the first I1 screen enter 1 for the Multi-form code for 5471 in the first box on the screen and enter amounts as needed related to the foreign corporation.

5. Overrides and additional data entry for primary and for the secondary taxpayer is available at the bottom of the I1 screen under "Taxpayer" and "Spouse" columns.

6. In View/Print mode, you should see Form 5471, pages 1-6 with an additional Form 5471, page 6 (Schedule I is located on page 6), and then two Forms 8992, pages 1 and 2.

See the Form 8992 Instructions and Form 5471 Instructions for more information.