hello,
I am close to the end of the tax return. I want to clarify before I file it.
This is my first year to use turbo tax business for my s corporation.
I have used a CPA for previous years since I formed s-corp for my business.
Reviewing the forms, I noticed that question number 4(Form 1120S Schedule B other information) is different than previous years.
( my S-corp received K-1 from a partnership LLC. I own 20% of the LLC.)
I think that is why turbo tax said "yes" on 4b, and filled the description in the table. But my previous Schedule B specified "no" on that question. I wonder why that is....
I wouldn't worry about the prior year (2018 - 1120S) unless the CPA failed to pick up the 2018 income/loss from the LLC. your answer for 2019 is correct
2018 and 2019 returns have exactly the same wording for that line. but the wording doesn't make sense
Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or
2019 1120s schedule b line 4b
Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . .
2018 1120s schedule b line 4b
Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . .
I wouldn't worry about the prior year (2018 - 1120S) unless the CPA failed to pick up the 2018 income/loss from the LLC. your answer for 2019 is correct
2018 and 2019 returns have exactly the same wording for that line. but the wording doesn't make sense
Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or
2019 1120s schedule b line 4b
Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . .
2018 1120s schedule b line 4b
Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . .