Scorp - What tax categories would the following go under: 1. reconciliation discrepancies? 2. overpayment refunds to a client 3. room rental income from a contractor

[tagteam · Accepted solution]

Are you using QuickBooks and also TurboTax Business (the latter to prepare your 1120-S)?

Reconciliation discrepancies are not something that would be entered as income or expense items unless and until you are aware of the actual source. Most likely, you have an unrecorded check or deposit, a duplicate payment, et al, that you need to track down.

You can use returns and allowances or other income for refunds (in the Income section) and rents (in the Deductions section) for the rent the corporation paid.

[Mike9241]

what type of reconciliation discrepancies and the approximate $ amount.   $.10 on a bank rec is one thing.  net income being off $1000's is another. if you overpay refunds to clients they're included with the refunds.  there is no need to segregate them.

room rental classification and where to report on the 1120 s depends on factors you haven't provided.  i have provided a link to 1120S instructions look at page 8 and 23

https://www.irs.gov/pub/irs-pdf/i1120s.pdf 

[Anonymous]

Thanks, the rents are received from 1099 contractors that are renting a room within the office while they perform their services.

e.g.  therapist receives 40.00/15 minute and pays the office 10.00 of that 40.00 as room rent.  Thanks

[Critter-3]

@Anonymous

Based on the volume of posts you have made in this forum it is apparent that you probably need to consult a local bookkeeper to get educated in how to set up and keep  your books and file the corporate return.   The Quickbooks program is wonderful and will do everything you want or need  however you must understand what you want or need  and how to properly use the program to it.   Quickbooks has a forum and there are quickbooks advisors so seek help there as well.