Why is CA form 568 asking for my "total assets end of year?" I am a single member LLC. No Schedule L. No balance sheet. Can't get past this point.

[ThomasM125]

Your total assets would be the amount of cash in the business and business property cost basis at end of year. It would not affect your tax in anyway, so you can manually calculate a reasonable amount for that entry.

[dg_enterprises]

They have never asked for this in the past. Why this year?

[SLOGoing]

How do you calculate a "reasonable amount"?

[Twitter1]

Re: Why is CA form 568 asking for my "total assets end of year?" I am a single member LLC. No Schedule L. No balance sheet. Can't get past this point.

[DawnC]

You should have a depreciation report and a Form 4562 that lists your non-current assets.    If you use accounting software, you should be able to generate a report for all of your business assets.   @Twitter1

Assets

Here are the components of a balance sheet:

• Assets – What your business owns. Assets are resources used to produce revenue, and have a future economic benefit.
• Liabilities – Amounts your business owes to other parties. Liabilities include accounts payable and long-term debt.
• Equity – Equity is the difference between assets and liabilities, and you can think of equity as the true value of your business.

The components are connected by the balance sheet formula:

Assets = liabilities + equity

The formula is used to create the financial statements, including the balance sheet.

What are assets?

Generally Accepted Accounting Principles (GAAP) requires firms to separate assets and liabilities into current and non-current categories.    [Edited 05/13/21  5:35PM]

[dg_enterprises]

Single member LLCs are not required to keep a balance sheet or list assets. This is the entire problem. Please read the questions more carefully. 

PS: When I originally posted this, i decided to pay the $60 for the TurboTax live accountant. He couldn't figure it out either. 

[DaveF1006]

According to the Form 568 instructions, if you are not required to file Schedule L, you are also not required to provide total assets (Item G on side 1).  Check your responses to Form 568 questions about your answers to Form 1065, Schedule B, questions 4a through 4d (or similar questions) and the number of members, to make sure you have answered appropriately to be exempt from Schedule L and Item G.

If an entry of Total Assets is still required, you can either enter total assets to clear the error, or print and mail the Form 568. You will need a waiver to print and mail the form. 

[terracodellc]

For Tax Year 2021:  If you double click the field for the total assets, it comes up with a form that you can check off to not send the asset form. I then put 0 into the field on Form 568 since my LLC doesn't have any reportable assets.

[mcgalmon]

Were you able to actually transmit for e-filing?  Even after I check the box and put “0”, it take me in an endless loop of reviewing.  The number is not saving in that field even if I put anything other than “0”.  I really don’t want to have to file by mail.

[SueSC]

@mcgalmon  Have you found a solution or work-around?

[mcgalmon]

No answer yet.  I was on the phone with support for almost an hour the other day but had to leave it for a work meeting.  I haven’t had a chance to call them back.  I did a screen share so hoping this is a glitch that will get fixed.  I’ll try to call them again this week when I can.

[GeorgeM777]

@mcgalmon   Form 568 is the Return of Income for Limited Liability Companies.  Item G of Form 568, which is on the first page of that form just below the name and address information for the LLC, is where the member/owner of the LLC enters the total assets of the LLC for the year.  In their tax booklet for 2021, the CA Franchise Tax Board, at page 13, states the following with regard to the total assets to enter in Item G:

"If the LLC is required to complete this item, enter the total assets at the end of the LLC’s taxable year. This is determined by the accounting method regularly used to maintain the LLC’s books and records. If there are no assets at the end of the taxable year, enter $0." (underline and bolded text added)

Thus, based on the above instruction, if your LLC had no assets at the end of the taxable year, you can enter 0.  For your information, below is a link to a TurboTax article which explains CA Form 568 which you might find helpful.  

How do I know if I should file CA Form 568

[SueSC]

@GeorgeM777 

TAX YEAR 2021 Business. CA form 568 keeps on asking for my "total assets end of year?" I'm not required to file Schedule L or Schedule M-3. I need to leave Line G blank. I can't enter "0" as a value because "0" and leaving it blank doesn't mean the same thing. Is there a work-around this to e-file? I've been using TurboTax Business for over 10 years and I have never had this problem before. Please advise!

[GeorgeM777]

@SueSC   Need some clarification.  Are you saying that if you enter 0 in the Question G box, you will get an error message preventing you from e-filing your return?

Additionally, on page 18 of the CA LLC Tax Booklet, the Franchise Board states the following:

"If Question 4a through Question 4c on federal Form 1065, Schedule B, are all answered “Yes” and the LLC has 10 or fewer members, the LLC is not required to complete Schedules L, M-1, M-2, or Item G on Side 1 of Form 568 or Item K on Schedule K-1 (568)."

Are we correct in assuming that the reason you are not required to file Schedule L, or Schedule M-3 is because, as noted in the above quote, questions 4a through 4c on your federal Form 1065, Schedule B are all answered with a "yes," and further that your LLC has 10 or fewer members?