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.
They have never asked for this in the past. Why this year?
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.
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:
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.
Generally Accepted Accounting Principles (GAAP) requires firms to separate assets and liabilities into current and non-current categories. [Edited 05/13/21 5:35PM]
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.
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.
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.
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.
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.
@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.
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!
@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?
When I enter a value, there will be NO error message. However when I try to leave it blank, I get the error message.
Yes that is correct. The reason I am not required to file Schedule L, or Schedule M-3 is because, as noted in the above quote, questions 4a through 4c on my federal Form 1065, Schedule B are all answered with a "yes," and further that my LLC has 10 or fewer members
@GeorgeM777 @SueSC I have tried entering both “0” as well as a number (also checked and unchecked the worksheet box). Whatever number is entered appears there at the time, but when you go to transmit the return, I get a message that I need to “review” my forms before filing. When I review yet again, that G field is now blank. I enter something again and am in the endless loop with no way to e-file since it won’t allow it. It has to be a glitch in the system, right? I have already e-filed for Federal and another state with no issues. For clarification, I am not required to file those other forms. I don’t think it makes a difference, but this is my final CA filing because we moved so domesticated the LLC to another state. I hope to have time to call support again tomorrow so hopefully it can get escalated.
@SueSC Given that the CA LLC Tax Booklet indicates that an LLC "is not required to complete Schedules L, M-1, M-2 or Item G" it does not appear that there is a prohibition against entering 0 if the LLC chooses to do so. Thus, if the correct answer to Item G is 0 because the LLC's assets at the end of the year were in fact 0, and given that there is no prohibition against entering 0, enter 0.
@GeorgeM777 Entering "0" in the field wouldn't be ideal because the LLC's end of year asset is not "0." So there no way to leave the field blank? Will this issue get escalated?
@SueSC There appears to have been a misunderstanding. You mentioned in an earlier post, that when you enter a value for Item G, there is no error message. Therefore, even though you may not be required to complete Item G as per the CA LLC Tax Booklet instructions, entering the correct value for Item G does not appear to be prohibited.
@GeorgeM777 I apologize for the confusion. It appears that there is still an error even after entering a value on Line G. Entering a value on Line G allows me to get through the review. The program tells me that I am ready to file my taxes. But when I actually take the steps to e-file, the program indicates that there is an error in the return. Line G is blank just like @mcgalmon mentioned.
@SueSC Assuming you have not already cleared your cache and cookies, let's try the following option. A useful remedy to many application issues is to clear your browser's cache and delete cookies. A full or corrupted cache can keep TurboTax from functioning properly. If that doesn't work, try a different browser such as Safari or Firefox if you're currently using Chrome and vice versa.
@GeorgeM777 I am using TurboTax Business Windows program. I'm not using a browser. I already cleared my cache and deleted cookies. It still didn't work.
Update (Tax Year 2021, CA Form 568): I got off the phone with support and I was told to go ahead and file the CA forms via mail. I did a screen share so they are aware of the glitch but I’m guessing they can’t guarantee a fix before the forms are due.
I am also in this endless loop. It doesn't matter what value I put in G, TTWin says everything is OK but when I press "Transmit Now" it stops with a "We need to make one more check" and returns me to form 568 field G which is has *blanked out* and requires that I put an entry.
I have tried deleting my CA return and re-starting it. Doesn't fix the problem.
I have tried switching to the FORMS view and entering the value directly. Doesn't fix the problem.
I've been using TTWin for over a decade and never not been able to e-file. What is going on now? Is CA no longer accepting e-file of form 568 (that's bonkers)? Or is TTWin just broken and I've wasted my money? Is it finally time to switch to some other e-filer? I could really use some help here.