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Level 2
March 8, 2021
Question

Issues with SCorp schedule L balance sheet

  • March 8, 2021
  • 6 replies
  • 42 views

I have a new business that is filing as S corp for the first time. It had no income or expenses in 2020 however the business is a partner in another company and received a K1 for a loss. That is listed in line 24 as a negative retained earnings and is making my balance sheet out of balance by that amount. I can't seem to find any information on how to zero that out. Any suggestions?

6 replies

Level 15
March 8, 2021

Do you need to prepare the balance sheet in TurboTax? It is probably not required given your scenario.

Level 2
March 8, 2021

Unfortunately we live in Oklahoma and they require a balance sheet no matter what, so that forces me to do one.

Rick19744
Level 13
Level 13
March 8, 2021

You need to have an investment account set up in the assets section; probably best on line 9.

Most likely you have not adjusted this account for the K-1 loss.

 

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.