Corp Taxes, Part 1, how do I tell TurboTax to not claim it the General Tax reduction?

[Delphision · Accepted solution]

Passive income.  You need to make sure that Schedule 7 is filled out.  Make sure that your income is listed correctly on schedule 125 under rental or investments so that the software knows that it is passive. It should calculate correctly.   Where it is entered on the form denotes active or passive income which should flow through.

[Delphision]

If this is the small business tax credit, is there a reason not to claim it?  Are you trying to apply it to a connected corporation?

[lmichaels77]

The small business isn't eligible for this credit. Revenue isn't active - I think that is the phrase, it just comes in without you working for it like a normal business.