I am the sole owner and only employee of S corporation involved in technology consulting. For FY 2021, I used the funds in my business bank account to purchase $6000 worth of I bonds. Where do I put this as investment in my TT business (to generate 1120s and K1) so that it doesn't show up as QBI (pass through owner's draw)
I am using desktop version of TT Business purchased from Costco sometime back. I know I am late in all the fillings... just have to pay the fines and get it done with.
Here are some more details:
Total consulting revenue for 2021 = $80000
Total Salary paid to owner = $40000
Total expenses (included payroll, 401K match etc) = $20000
The QBI / ordinary income is coming to 20000.
How do I enter the $6000 worth of I bonds purchased in 2021 which I plan to hold for few years. This is an investment by my S-corp. If I can't does it mean that the investment in I-bond is considered or added to the QBI and gets reported on K1 and only the total interest reported during i-bond redemption few years later will get reported as interest income?
I tried to look for question where TT asks for any investments I made in 2021 using business account, but it doesn't.
I thought the QBI should come out to $14000 for FY2021 and the $6000 I bonds when redeemed in 2027 along with interest will get added on as income in FY 2027 for the S-corp. Am I missing something?
Thanks for the prompt answer. I still can't get the TT Business (desktop) to complete the review process without error.
In short, how do I enter this $6000 purchase of I-bonds in TT Business (Desktop version) so that my QBI is $14000 and the $6000 shows up as US Security investment on balance sheet section.
Right now I get the error message on the 'Review and correct ending balance' section of TT Business -
The difference between Schedule M-1, line 8 and Schedule K, line 18 is -6000