Discussion:RECONCILING BOOK / TAX INCOME-1120S

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KathiJud (Talk | contribs)
(Thinking of the)
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If you make this entry and adjust your book P&L for real so there is no M-1 adjustment.}} If you make this entry and adjust your book P&L for real so there is no M-1 adjustment.}}
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 +{{ForumReplyPost|UserID=Southparkcpa|Date=13 October 2009|Text=The journal entry on the s corp books (isn't it late?) is as follows:
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 +It follows the "Equity method of accounting"
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 +Credit Invest in partnership (asset account)
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 +Debit loss on Investment (P and L account)}}

Revision as of 14:17, 13 October 2009

Discussion Forum Index --> Advanced Tax Questions --> RECONCILING BOOK / TAX INCOME-1120S
Discussion Forum Index --> Tax Questions --> RECONCILING BOOK / TAX INCOME-1120S

PM1040 (talk|edits) said:

13 October 2009
MY CLIENT RECEIVED A K-1 (#1065) AND I ENTERED THE LOSS OF $(24) ON PAGE 1 LNE 5 OF #1120S...BUT WHERE DO I MAKE THE ENTRY TO BALANCE MY BOOK LOSS WITH TAX RETURN LOSS FOR THE $(24)

I HAVE TRIED TO ENTER $(24) ON SCH M-1 BUT I WILL HAVE TO MANUALLY OVERRIDE THE SOFTWARE (PROSERIES-INTUIT) ....WHERE DO I PUT THE $(24) SO I CAN FINISH THIS TAX RETURN TODAY????

THANKS FOR YOUR HELP

Kevinh5 (talk|edits) said:

13 October 2009
investment in partnership/LLC (we tax people sometimes call this 'basis')

KathiJud (talk|edits) said:

13 October 2009
Thinking of the balance sheet - shouldn't the $24 loss reduce your Investment in this entity asset account? Do you not normally record this on the corp's books?

If you make this entry and adjust your book P&L for real so there is no M-1 adjustment.

Southparkcpa (talk|edits) said:

13 October 2009
The journal entry on the s corp books (isn't it late?) is as follows:

It follows the "Equity method of accounting"

Credit Invest in partnership (asset account)

Debit loss on Investment (P and L account)

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