Balance sheet does not balance

[Marinamalina]

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 ?

[Anonymous_ · Accepted solution]

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. 

[barry13]

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. 

[AlijahO]

I made over 250,000 and I'm a C Corp and the Balance sheet is showing -19,000 and will not balance. 

[Anonymous_]

Balance sheet problems are tough to troubleshoot in this format unless you post all of the figures.