topic Brokerage account balance throwing off balance sheet in Get your taxes done using TurboTax

Brokerage account balance throwing off balance sheet

partner-tax-fun — Mon, 10 Feb 2020 02:03:13 GMT

2 member partnership, own land with rent income, and have investment account through brokerage. 2019 is the 2nd filing for this LLC. I've entered in rental income (and expenses), info from consolidated 1099, and land value (same as prior year). Total assets are correct, but TurboTax is showing a lower number in the total liabilities and capital, even though I have not entered anything in that section of the Schedule L. Should the increased value in the markets account be entered somewhere?

I'm at a loss and have gone through and checked the math for the calculated book income, and it is good. Any help is appreciated! Thank you.

Re: Brokerage account balance throwing off balance sheet

MinhT1 — Mon, 10 Feb 2020 22:23:09 GMT

You must enter the value of your brokerage account at cost value, and not market value. The difference between these 2 values is unrealized gains, which is not taxed, nor entered on the balance sheet.

Re: Brokerage account balance throwing off balance sheet

partner-tax-fun — Fri, 14 Feb 2020 02:04:47 GMT

@MinhT1 Thank you for the response. Using the cost value gets the number closer to what TurboTax calculated but it is still off. I tried to do cost basis plus cash and cash equivalent but it is still off as well.

For 2018, the accountant who did these taxes for me put the market value (which was lower than the cost basis - don't know if that was right to do or not).... but he listed it under "Other Assets".

TurboTax seems to be keeping that investment (other asset) value constant so now I'm unsure if there is somewhere I enter in an adjustment to account for the decrease in cost basis? Or do I leave the value constant so it is balance?

Re: Brokerage account balance throwing off balance sheet

barry13 — Wed, 11 Mar 2020 03:53:32 GMT

Make sure to account for any fees that the brokerage firm charged. These include commissions for trading as well as professional fees for account management.