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Answered in 40 minutes by:
6/18/2015
Stephen G., Sr Financial Expert
Category: Finance
Satisfied Customers: 10,959
Experience: Extensive Experience with Tax, Financial & Estate Issues
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Not sure what else you can do. I take it there's no "Paid-in-Capital" account?
If so you would have to add that into the Capital Stock & R/E also.
Didn't they maintain the Sub S equity accounts? AAA, etc. I'm asking as you'll want to make sure you know what they did with the shareholder distributions.
.
Not sure what else you can do. I take it there's no "Paid-in-Capital" account?
If so you would have to add that into the Capital Stock & R/E also.
Didn't they maintain the Sub S equity accounts? AAA, etc. I'm asking as you'll want to make sure you know what they did with the shareholder distributions.
.
Well, as I said there's not much else you can do without going back to analyze what's gone into the numbers you are using.
Is the balance sheet on the tax return the "book" balance sheet? That's what it is supposed to be. How were non-deductible items handled? Did the partners take any of their own deductions on Schedule E? For example some S-Corp shareholders claim their own automobile expenses as deductions on Schedule E.
How was Section 179 handled book verses tax? What about shareholders' health insurance? Auto leases, how was the personal use handled?
I'm not suggesting you answer these questions for yourself, but these are just some of the areas that could affect basis depending upon how many, if any, of these and/or other similar items were treated.
As I said, from a practical standpoint there's not much you can do other than what you suggested, unless of course the individual partner's basis was disclosed somewhere. If so, I would tend to use those numbers.
.
Is the balance sheet on the tax return the "book" balance sheet? That's what it is supposed to be. How were non-deductible items handled? Did the partners take any of their own deductions on Schedule E? For example some S-Corp shareholders claim their own automobile expenses as deductions on Schedule E.
How was Section 179 handled book verses tax? What about shareholders' health insurance? Auto leases, how was the personal use handled?
I'm not suggesting you answer these questions for yourself, but these are just some of the areas that could affect basis depending upon how many, if any, of these and/or other similar items were treated.
As I said, from a practical standpoint there's not much you can do other than what you suggested, unless of course the individual partner's basis was disclosed somewhere. If so, I would tend to use those numbers.
.
Stephen G., Sr Financial Expert
Category: Finance
Satisfied Customers: 10,959
Experience: Extensive Experience with Tax, Financial & Estate Issues
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