Query: Availability of Form 8936 for S Corporations and Partnerships in ProSeries

[vshah]

Dear Members,

I hope this message finds you well.

I have a query regarding the availability of Form 8936 for S Corporations and Partnerships in ProSeries tax software. As per regulations, businesses are eligible to claim the Commercial Clean Vehicle Credit by filing Form 8936. However, I have noticed that this form is currently unavailable for S Corporations and Partnerships in ProSeries.

I would like to inquire if anyone has information on when this form will be made available in ProSeries for S Corporations and Partnerships. Alternatively, if anyone knows of any alternative methods to access or file Form 8936 for these entity types, your insights would be greatly appreciated.

Thank you in advance for your assistance and insights.

Best regards,

Vrajesh Shah, CPA

[ERIC J]

i HAVE THE SAME QUESTION - FORM 8936 FOR S CORPORATION TO CLAIM EV CREDIT.  I SEE THIS QUESTION WAS INITIALLY POSTED MARCH 4.  I CAN'T BELIEVE THERE IS NO ANSWER YET?????  WE CANNOT BE THE ONLY 2 PUZZLED WHY PROSERIES IS NOT OFFERING WHAT THE IRS IS MANDATING FOR A VERY COMMON TAX CREDIT.  HELLO ANYONE???  PLEASE HELP. 

[IRonMaN]

What is common for some isn’t common for everyone.  I haven’t had a need for the form.

[ERIC J]

Thank you for reading but a non-reply to my post would have added more value and been a more productive use of everyone's time.

I think EVs are very common today and growing in popularity, so I stand by my inference that Form 8936 is a common form.  We should expect and deserve all common forms to be easily accessible in Proseries. 

As for the work around, It was not too much extra effort to complete the fill in Forms 8936 and 8936A and attach to the E-File. I also added a Misc Statement to the return alerting IRS to the attachment submitted and included the key data from the 8936. I input the credit directly on Sch K of 1120S with the tag for the New Clean Vehicle credit and the E-File was accepted.

[BobKamman]

@IRonMaN BE CAREFUL ABOUT RESPONDING TO SOMEONE WHO SHOUTS A COMPLAINT ABOUT NO ANSWER BEING VOLUNTEERED BECAUSE SOMEONE WILL COME BACK WHO FOUND THE ANSWER BUT DIDN'T SHARE IT AND CRITICIZE YOU FOR COMMENTING ON HIS COMPLAINT.

[PATAX]

Iron Man is exactly right. I have never had one client need that form, not one. And I have never heard of a colleague needing that form. If Intuit made available every rare form then the cost of the software would double. Iron Man said the truth. Sometimes people don't like to hear it, but too bad.

[IRonMaN]

I feel terrible that I was non-productive.  I guess I’ll have to stick to Sven and Ole jokes.  🙄

[PATAX]

Like an old Croatian used to say when I was a kid: "Let them eat their cabbage twice".

[lisaw1]

Thank you Eric for outlining your work around.  Doing one now

[Denver1]

Filing Form 8936 and calculating plug-in electric drive vehicle credits in ProSeries

https://accountants.intuit.com/support/en-us/help-article/federal-taxes/filing-form-8936-calculating...

[newwebfin]

Hello,

I received K-1 and line 15th Code AY -New clean vehicle credit, and software allows the full credit even client income of 400K, do you think the business has no income limit, please post your input

[ERIC J]

For S corporations and partnerships, my interpretation is that the income limit applies at the partner and shareholder level, not the entity level.  I think you'll be able to confirm this to the Form instructions The availability of the credit is reported to the partner / shareholders on the K1 as a separately stated informational item for them to apply the income limit rules.  I also included a footnote to the K1s alerting them to that K1 line item and the income limit. 

I haven't thought about the depreciable basis issue until now - tax credits like this one need to reduce the asset's depreciable basis.  The entity needs to know if the credit will be taken at the individual level.  This would be difficult for an entity with a large number of owners to calculate accurately.  I don't know if this is addressed in any IRS guidance or the form instructions.  

[Moine]

Thank you for your valuable input, I just read the income limits guideline and it mentions “If a partnership or an S corporation places a new clean vehicle in service and the New Clean Vehicle Credit is claimed by individuals who are direct or indirect partners of that partnership or shareholders of that S corporation, the modified AGI thresholds apply to those partners or shareholders.

But the problem is software allowing my part of the $ 3750 credit in form 3800, do you know how to show carry-over next year or suspended in the pro series

[ERIC J]

There is no carryforward for this EV credit.  Yep, it's a real bummer. If you don't use the full credit in the year you purchased the vehicle, the rest is lost.  

[TaxGuyBill]

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@Moine wrote:

But the problem is software allowing my part of the $ 3750 credit in form 3800, do you know how to show carry-over next year or suspended in the pro series

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Which credit is it?

Is it being limited due to AGI or is it being limited to the amount of tax?

Are you aware that General Business Credits are often carried BACK, not forward?  But that depends on the situation and the answers to the questions I asked above.

[BobKamman]

But now the credit is refundable in the year of purchase, if you get it through the dealer.  I haven't had a client doing this yet, but I think all that's needed is to sign a statement that you expect to qualify.  If you don't, there's no payback required.  That includes cases, both of not enough tax and of too much income.  

[lweav]

I interpret the income limit to apply at the partner or S corp shareholder level for the Clean Energy vehicle credit but not the Commerical clean energy vehicle credit?

[Terry53029]

From 8936 instructions. "if their only source for this credit is a partnership or S corporation. Instead, they can report this credit directly on line 1y in Part III of Form 3800, General Business Credit."

[Moine]

I also read the publication it clearly says the individual-level income limit is 300K. if nothing helps me, I will remove credit from line 15.

But now the question is the basis of the assets, since none of the partners received credit because of the high income may I amend the partnership tax return and remove the credit? Or fill out form 3115

Please advise me and again thank you for your time.

[Moine]

Client filed a partnership tax return, and now they realize their income is over 300k, can I amend the partnership tax return remove $ 7500 credit & increase the purchase price of the car.