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sboscorp
Level 1

How to report/account for I-bond purchased by my S-Corporation

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?

2 Best answer

Accepted Solutions
tagteam
Level 15

How to report/account for I-bond purchased by my S-Corporation

The bonds would appear on your balance sheet (if you are even required to keep one or want to do so).

 

Otherwise, there is no transaction to report until you dispose of the securities.

View solution in original post

tagteam
Level 15

How to report/account for I-bond purchased by my S-Corporation

You can enter balance sheet items in Forms Mode and also remove it from Schedule K on your 1120-S.

View solution in original post

3 Replies
tagteam
Level 15

How to report/account for I-bond purchased by my S-Corporation

The bonds would appear on your balance sheet (if you are even required to keep one or want to do so).

 

Otherwise, there is no transaction to report until you dispose of the securities.

sboscorp
Level 1

How to report/account for I-bond purchased by my S-Corporation

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

 

 

tagteam
Level 15

How to report/account for I-bond purchased by my S-Corporation

You can enter balance sheet items in Forms Mode and also remove it from Schedule K on your 1120-S.

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