The balance sheet in TT Business is generated by inputting the figures from other sources depending on how you maintain your books and records; excel, QuickBooks, etc.
So this is telling me that you have not recorded the purchase of the business on any books and records?
If you have not done so, then you need to do this. This is fairly straight forward if you understand accounting.
You need to look at each class of assets and record those:
- If you purchased inventory, then you debit inventory and credit each members capital account based on their ownership percentage
- Same for fixed assets, although these need to also be entered into the depreciation section if you want TT to compute and maintain the depreciation records.
- If you have goodwill or intangibles, then these amounts will essentially be handled the same as fixed assets except these are amortized not depreciated.
- Keep in mind, as you record all the items on the form 8594, for every debit there needs to be a credit so in the end, everything should balance and tie to the form 8594.
- Also keep in mind that the seller and buyer form 8594 MUST agree when they are submitted by the respective party. If they don't, it may very well generate a matching notice.
Depending on the $$ involved, you may want to consider consulting with a tax professional.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
