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My initial partner's capital is rounding up $1.00. How do I manually change it.
1065 Business Tax Return - first year in business. Trying to set up initial business information. There are four partners. The total partner capital is off by $1.00 due to rounding. How do I manually change the return so that it matches?
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My initial partner's capital is rounding up $1.00. How do I manually change it.
It's been a while since I used TT Business, so this is from memory.
TT contains a purposeful rounding error. That is, the developers chose to round early instead of late. They say the IRS allows this and has no problem with it, but they are wrong. Rounding should occur after un-rounded quantities are added. We users argued about this year after year, and finally gave up because they would not budge. In most cases, the $1 error makes no difference, but for business returns, depending on the location of the error, it can cause you to be unable to file because quantities don't match.
To fix it so that you can file your 1065, find a line that looks like a miscellaneous addition or subtraction, on the same form or schedule where the rounding error occurs. Manually enter either $1 or -$1 and label the line "Rounding error correction". If this makes you nervous, know that it has worked in the past without IRS comment.
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My initial partner's capital is rounding up $1.00. How do I manually change it.
It's been a while since I used TT Business, so this is from memory.
TT contains a purposeful rounding error. That is, the developers chose to round early instead of late. They say the IRS allows this and has no problem with it, but they are wrong. Rounding should occur after un-rounded quantities are added. We users argued about this year after year, and finally gave up because they would not budge. In most cases, the $1 error makes no difference, but for business returns, depending on the location of the error, it can cause you to be unable to file because quantities don't match.
To fix it so that you can file your 1065, find a line that looks like a miscellaneous addition or subtraction, on the same form or schedule where the rounding error occurs. Manually enter either $1 or -$1 and label the line "Rounding error correction". If this makes you nervous, know that it has worked in the past without IRS comment.
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