Discussion:How do I know what my AE&P is?
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Discussion Forum Index --> Accounting Questions --> How do I know what my AE&P is?
Luedtkepnt (talk|edits) said: | 28 January 2008 |
| Maybe a stupid question, but I'm a laymen that's stumped. I run as an S-Corp that started out as a C-corp. I used too have my taxes done by a firm what was essentially robbing me, in my opinion. So I started to do my own taxes with TurboTax. I've been able to figure out most things to get through my taxes okay, partly by copying what the professionals did on previous years.
So on previous (professionally done) taxes- My 1120S, Sch B, Line 8 was always indicated with a check in the box. But up until last year there wasn't a spot for them to indicated a $ amount. Now, as I'm on my own, I need to fill a $ amount for my AE&P and I'm not sure what that would be. Is there some place within my previous taxes that would indcate what the accountants calculated as my AE&P? If not, how do I figure that out? Does it have anything to do with the last "retained earnings" from when it was a C-corp.? Once I figure the AE&P, does that number remain the same for every year as long as I don't distribute it? Is it best to distribute it or leave there until business dissolves? (I'm just a small business that when I'm ready to retire, it retires with me.) I've tried for many hours to get this info on the web, but not much out there to really help me understand AE&P, especially because all these other accounting terms that are used with it - which I don't understand. I'm sure someones first response would be to tell me to hire out again, but that's not an option. This the only area I can't seem to understand and I'm not paying hundreds of dollars because of one stuck area. Please, Please can someone help me understand AE&P in Laymen terms? Thank you so much!!!!!!!! | |
| 28 January 2008 | |
| You apparently are one of those "do-it-yourselfers".
Since you don't want to be "robbed" again, do as the TV commercial says, and "ask the box". You've asked a number of questions that require extensive explanation. These are issues clients pay us "robbers" for. | |
Luedtkepnt (talk|edits) said: | 28 January 2008 |
| The only ? I really care about is how do I know what my AE&P is? I just want to get through this years taxes right now.
Is there somewhere to look for it on previous taxes or is there a basic formula to figure it out? | |
| 28 January 2008 | |
| Apparantly you don't have to state that you are a tax professional to ask an accounting question on this board.
Is this what we want? Tim? | |
Luedtkepnt (talk|edits) said: | 28 January 2008 |
| Well that's a different tone, moments ago you called me liar! I didn't think you had to be an accountant to ask a question. I came across this site when searching the web for my answers and figured it looked like a great place to ask it. Just for the record, I don't lie!!! Not even on my taxes!!! | |
| 28 January 2008 | |
| I edited the post because I tested it and saw that you did not need to answer such a question. You did not lie.
for the tax forum, you have to answer such a question. I assumed the same for the accounting forum, but you know what that makes me. | |
| 28 January 2008 | |
| since I am the wrong one, I'll give you the answer: read whole page | |
Luedtkepnt (talk|edits) said: | 28 January 2008 |
| Thanks for all your research Kevinh5. I've read through most of it, I'm sure I need to read again. Most of it appears to answer alot regarding distributions, which is great info. for maybe the future. But I'm really focused the $ amount I need to fill out Line 8 on my 1120S Sch.B. I apologize if you did answer that question with all the info here, but I guess I just don't get it then. So in my ignorance, no doubt, I'm re-asking:
How do I find or figure the AE&P? If memory serves me, we did not distribute any earnings or pay didvidends from the C-Corp. I only distribute current earnings from the S-corp to shareholders. So I'm presuming the AE&P has to be calculated from when I was a C-corp or it is already there on my last C-corp returns. I wish when I was paying hundreds of dollars each year to do my taxes this would have been done for me. But it wasn't!! I don't know why except that previous 1120S forms did not ask for the dollar amount. If I could pay a small fee for someone to do this one thing to finish my taxes I would. But the rest of the taxes are done. Just this one stupid tax line causing me grief. | |
