NASSAUSUFFOLK

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  • 1.  S Corp / Shareholders change during the year

    Bronze Most Valuable Member
    Posted 08-19-2024 03:30 PM

    I use Lacerte Tax to prepare my S-corp returns. I also utilize my bookkeeping program (QB), allocating income and expenses based on ownership periods.  I have tied in the QB to Lacerte in total, but thought I could allocate information onto the K-1's based  upon the actual cash basis activity. There does not appear to be an allocation section in the input where I can override the calculated figures to agree with the income and expenses allocated to the period of ownership.

    Do you have any thoughts as to how to complete the return? Does it make a difference if a shareholder becomes an estate due to the death of the previous shareholder?



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    Michael L. Schneider
    MICHAEL L. SCHNEIDER, CPA
    Cedarhurst NY
    516-374-8400
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  • 2.  RE: S Corp / Shareholders change during the year

    Platinum Most Valuable Member
    Posted 08-20-2024 11:57 AM

    Michael:

    In an S corporation, the income is deemed to earned on a per share per day basis (unless there is a mutual agreement otherwise). The software should automatically allocate the income based on the number of days the individual was a shareholder.

    Robert 



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    Robert Brown
    CPA
    Adeptus Partners LLC
    Jericho NY
    516-364-4949
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