Hello there,
i am trying to file corporate taxes for company that did not make any business in 2017. it had purchased inventory of $3,000 and had expenses of total $1,349
balance sheet shows that that it does not balance for $4,349. considering that company was operating at the loss how can i balance out the balance sheet ?
You will most likely have to make a manual adjustment on Schedule L in Forms Mode (with the assumption that this is an S corporation return).
Note that you can skip the balance sheet section entirely if the corporation's income and total assets are less than $250,000.
You will most likely have to make a manual adjustment on Schedule L in Forms Mode (with the assumption that this is an S corporation return).
Note that you can skip the balance sheet section entirely if the corporation's income and total assets are less than $250,000.
Turbotax has a problem calculating the Net Income (loss) Per Books -- I haven't the foggiest idea how it arrives at the number it arrives at. I recommend overriding this value, which is found in Line 1 of the form "Reconciliation" -- calculate the Net Income (loss) Per Books yourself.
1. The simplest version of Net income per Books (same thing as "Net Income") is:
Net Income per Books = Revenues - Expenses
Revenues is your total income, and expenses are the business expenses that you are deducting.
Basically, Net Income = Taxable Income on line 28 on Page 1 of Form 1120.
2. If you have Schedule D with capital gains:
Net Income = Revenues - Expenses + Capital Gains
3. If you also have Expenses that were not deducted then:
Net Income = Revenues - Expenses + Capital Gains - Non-deducted Expenses.
I made over 250,000 and I'm a C Corp and the Balance sheet is showing -19,000 and will not balance.