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rramsook
rramsook, Enrolled Agent
Category: Tax
Satisfied Customers: 307
Experience:  Specialize in Individual,Corporate, and payroll tax matters.
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Hi Doing my 1065 for my business. Use quickbooks and imported

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Hi Doing my 1065 for my business. Use quickbooks and imported my 2012 tax data directly.
It did not bring in my annual depreciation and annual amortization expense; I also did not see these accounts on my quickbooks P and L?

Is annual depreciation and annual amortization suppose to be on my P and L and thus reflected on my 1065 deductions from income section?

rramsook :

Hello, Welcome to Just Answer.

rramsook :

Did you book the journal entry for the amorization and depreciation expense on quick books?

Customer:

Yes .. but just noticed account status for tax line states 'unassigned'

rramsook :

depreciation should be reported on page one of Form 1065

rramsook :

usually

rramsook :

this expense does not come through on your tax software because you will have to enter in the asset details and have the tax program calculate the amount for you

Customer:

okay what report on quickbooks do i run and manually post to my 1065 for now and is it the same for amort exp/

rramsook :

If you made the journal entries for depreciation and amoritzation expense on QB then it should show up on your P&L statement

Customer:

oh I see then I must not have done it correctly ... okay I need to step back and start from assigning accounts and book properly in QB ... best way you are saying?

rramsook :

Yes, you will have to book the entry on quickbooks which will then show up on your P&L report

Customer:

okay lastly please confirm I have the right to include both my regular depreciation and regular amort expense on my 1065 which will reduce my net income?

rramsook :

yes, deprecaition expense will get reported on page 1 of 1065 Line 16a and the amortization expense will get reported on other deductions line 20

rramsook :

which will offset your income

Customer:

ok thanks much Take care

rramsook :

thank you for using Just Answer. Glad I can Help

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