It seems you entered an inaccurate adjustment.
Shareholder Equity (or Basis) is calculated within TurboTax by inputting your income and expenses and any contributions and distributions. Retained Earnings is calculated within TurboTax when you enter your income and expenses and either roll your prior year return over or enter your beginning info from a return processed outside of TurboTax.
So, depending on where you got your numbers, you may have almost double stated your equity by entering the adjustment. If you are required to report your balance sheet (Gross receipts for 2020 >$250,000 or Total assets for 2020>$250,000) you need to amend your tax return for 2020 and eliminate this adjustment. This only effects your basis calculation so you do not need to amend your personal return.
If you are not required to report your balance sheet for 2021 (Gross receipts or Total assets >$250,000) you should elect to not report it and move forward.
Also, make sure you did not enter this adjustment on your books. If you did, you need to reverse it and when you have to report your balance sheet in the future you will still be in balance.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
