What types of returns does TurboTax Business
handle?
TurboTax Business handles:
Estates and Trusts (Form 1041)
An estate consists of
personal property (automobiles, furniture, etc.), real property (homes, land),
and intangible property (stock certificates, bank accounts, etc.) that was
owned by someone at the time of their death.
A trust is a
business arrangement in which property is given by one person (the settler) to
be held by another (the trustee) for the purposes of benefiting a specific
class of persons or the general public (the charitable purpose).
Tax returns filed on the behalf of estates and trusts are also
called fiduciary returns. A fiduciary is an
individual (such as a trustee, administrator or executor) or organization
legally responsible for managing assets on behalf of another party, usually
called the beneficiary. The fiduciary is obligated to manage the beneficiary's
assets in the best interests of the beneficiary.
Partnerships and Multi-Member LLCs (Form 1065)
Partnerships are a type of unincorporated business organization in which
multiple owners (partners) manage the business and are equally liable for
its debts.
Unlike an LLC or a corporation, each partner shares equal
responsibility for the company's profits, losses, debts, and liabilities.
The partnership itself does not pay income taxes, but each
partner has to report their share of business profits or losses on their
individual tax return. The partnership will also file a Form 1065 tax return.
Limited Liability Companies (LLCs) are a relatively recent type of business
structure that combine the advantages of corporations with those of sole
proprietorships or partnerships.
Multi-member LLC profits and tax benefits are split by its
owners (members). LLC returns are filed only for reporting purposes; the
members report their business profits or losses on their individual (Form 1040)
tax returns.
Not all multi-member LLC will file a 1065, however. A few will
need to file as a Corporation (Form 1120).
S Corporations (Form 1120S)
An S Corporation is a
small business corporation, usually with less than 100 shareholders, which has
elected to have its profits pass through to its shareholders, in the same
manner as a partnership or sole proprietorship.
The owners (shareholders) of an S Corporation receive the
benefit of limited liability, and are treated in the manner of partners for purposes
of taxation. Income and losses from the business are passed directly to the
shareholders, who then report their share of those amounts on their personal
tax return. The S corporation itself will file an 1120S.
C Corporations (Form 1120)
A C Corporation (usually
simply called a "corporation") is a separate legal entity that offers
the greatest flexibility with respect to ownership and the free transferability
of ownership interest.
Corporations file their own tax returns using Form 1120 to
report income and losses.
Income is first taxed at the corporate level and, when
distributed as dividends, the same money is taxed again at the shareholder
level. As a result, income generated by a corporation can be taxed twice.
Related Information:
·
What is a sole
proprietorship?
To prepare a corporate, trust or partnership return you
would need Turbotax Business. This is a separate program from Turbotax
Home and Business. TT Business is a program only available for desktop
windows use (there is no on-line or Mac version.)
http://turbotax.intuit.com/small-business-taxes/
https://turbotax.intuit.com/small-business-taxes/forms-business.jsp
https://ttlc.intuit.com/questions/1917225-is-turbotax-business-right-for-me
To prepare a personal return, depending on the
complexity, you will need a version that prepares Forms 1040 such as Deluxe,
Premier, Home and Business, etc. If you have a Schedule K-1 from
either a Form 1120-S, Form 1065 or Form 1041 you will need either the Premier
version or (if you also have an unincorporated business) the Self Employed
version when using the online
program.
All the 2017 downloaded
programs will handle the personal return.
View this product guide chart to see which product is
best for you:
https://turbotax.intuit.com/personal-taxes/cd-download/
