Name: Intuit ProSeries: Business Returns
Uploaded: 2025-10-08T20:17:04.903Z
Duration: 1 h 1 min 8 s
Description: Intuit ProSeries: Business Returns

Transcript for "Intuit ProSeries: Business Returns": Hello, and welcome to today's webinar, Intuit Pro Series webinar on business returns. I am Diana Crawford. I'm a CPA, have been a CPA for about thirty four years. I like to think of myself as a tech strategist, helping clients plan for the future and building legacies through proper forward planning. I served on Intuit's tax council for five years, and I've presented at Intuit Connect, NATP, GS Georgia Society of CPAs, North Carolina Society of CPAs, and most recently at Bridging the Gap Conference. If I wasn't here with you today, I'd rather be out playing in my garden, be at the beach, or playing with my granddaughter. So, just wanted to mention a few housekeeping issues today. You wanna make sure that you are using your computer speakers, that this platform works best with Chrome and Safari. And if you're having trouble with the polls or the surveys, try using the incognito mode. So please help us understand if this was valuable to you by participating in the survey at the end of the discussion. You may find a PDF of the slides in the handouts area, and that can be downloaded too. You can come back and listen to this webinar later using the same link that you used to join the webinar today. Points to go, this is, we will have one polling question in the webinar. When we launch the poll, you will see two ways that you can answer it. There is a tab that appears next to the chat on the right hand side of your control panel. The poll will also take over your screen while we have the poll open. So you can select your answer using the radio button on the screen. And if the window opens to full view, you might need to use your escape button to reduce the size so that you can see the control panel. So if you don't see the poll tab, you may have to lower the size so that it can be displayed. Alright. Just wanted to point out that this is not tax advice. You do wanna make sure that you are applying anything that you have learned today into the situations that pertain specifically to your clients. And, make sure that that the advice that you or the points that you learned today, you use in with other information. This course is eligible for one CPE credit. You must be present for fifteen minutes and answer the poll question to qualify. Now your CPE certificate will be sent to your email address that you used to register for this event, and it and it's sent shortly after the webinar concludes. If you have any trouble with your CPE, please send an email. It would be sent to protaxtrainingintuit dot com. Alright. So what are we going to cover today? We are gonna cover the business use of the home, the form eighty eight twenty nine, talk about partnerships, Talk about S corporation and corporation returns. Talking about the balance sheet and then the QBI deduction. And with that being said, we're gonna go ahead and have our first poll question. So the question starts off with, what's your primary reason for attending today? Maybe you just want the CPE. Maybe you want to explore new solutions. Maybe you want a specific problem solved for you or general interest or just felt like hanging out with us today. Glad we're glad you're here. So we appreciate you answering the poll, and this also registers attendance for you. So, please go ahead and answer that. I am gonna give you a little bit of time because some people may just be getting logged in and caught up. But we'll give you a little time for the poll, and then, and then we'll get started and move on. Just a few more seconds. Alright. So I'm gonna go ahead and close the poll and we'll show you results. Alright. So our first topic is going to be the business use of home. So I I pulled from publication five eighty seven the, the flowchart on so how do we think the, the the questions or how to go through the questions to determine if a client fulfills the needs. So this is this is, does their use of the home qualify? Now, I'm also gonna jump over and move into showing you pro series, specifically because I wanna walk through the eighty eight twenty nine and show you that. This is you are, of course, are gonna work with your client on do they qualify to take the home office. My go through this in pro series is after you've made the qualification that they do qualify, and now you just need to know how to put it in the program itself. So I'm gonna stop the sharing there, share my screen, and we're gonna look at the eighty eight twenty nine form. So the eighty eight twenty nine is the expenses for business use of your home. And as you can see, you can get to this directly from the schedule c at the bottom and look into it, or you can also, put this in by going directly to the eighty eight twenty nine. So the product use is your home. You would fill that out. Now I'm sure we have, attendees today that use that have clients that have daycare facilities where they use their home. And so you would fill out all of this information. I'm not gonna go through the details of all the day care information because it's a lot. If a person is basically using a lots of spaces of their home, the the area, the kitchen, the the restrooms. So so I'm not gonna go through all the daycare facilities information. But once we get past this this smart box for daycares at the top, then we get to the meat of where we start. And so there's two methods basically that you can use on deciding how much space in a house qualifies. It's the square footage method or the room method. And again, that's in the IRS publication. So you determine from your clients how much space of the home is used exclusively for business, regularly for daycare, or for storage of inventory or product supplies. So we're gonna put that in. Our client has a relatively large space. Well, they gave us two forty square feet and that's not unreasonable, given the size home that it had. Some of the online services are real easy now to look up what that square footage is. So it's a lot easier to get that these days than it used to be if that information is accurate. And then we're gonna look at you know, there's a simplified method that's just based on the square footage. And so if a client doesn't want to get all of the details of their information and they qualify, then clicking the simplified method is is very easy. It comes up with the amount, applies it to the return, and you go forward. But we're gonna use the the, the full version today. So, obviously, this calculates out when you put in the square footage what the percentage of use is that you have. So we're at 4.29%. Again, we're gonna scroll past the day care because we're not using that here. And then there's the date that you begin using the home office for business. This is a field that doesn't carry over from year to year. And so for that reason, I always put in the first day of the year that I'm working on. You might wanna go back and put the date that they originally started using a home office at home, but that would've caused me to leave here, go look, and find another date. And and as long as I use the first day of the year, that works. And percentage of regards to income that comes from the home, you're gonna put that there. Gains, if you have it from the sale of this property, might go in this box. Okay. Scroll on down here because here's some of the meat and potatoes of what I wanted to talk about. So there's a left column that says direct expenses and a right column that says indirect expenses. What's that mean? In a nutshell, the direct expenses means expenditures that you have made directly related to the home office. So, for example, I had a client once that built out their entire basement into a full office, conference room, six different offices. It was a huge home in a huge basement. But it was just like walking into an office building on the street. So they had gotten a, a loan specifically for this build out. So that was a 100% under direct expenses because it wasn't a portion of the home. It was the the space specifically. So in that case, it could be direct expenses. Now I'm not saying you can renovate your home and the client could take it as a deduction, but if it was specifically for the build out of a home office, it might apply. So the indirect on the right hand side is most often where you're gonna put, the expenses because this is the mortgage interest, the real estate taxes, and all of the other expenses for the house as a whole. And whatever percentage has been calculated up above based on either number of rooms or square footage, that percentage is gonna be applied to these expenses down here in the bottom. Now another word of, of relevance here, if you are used to using the ten ninety eight worksheets, and I tend to do that because I like to know where these, you know, info where this information came from, then on the ten ninety eight worksheets, at the bottom, it asks for where does this information go. If mortgage interest is going to be going to an eighty eight twenty nine, It's not a business activity. It's an other. And so what that means is the ten ninety eight information needs to be entered on the appropriate form. And in this case, the appropriate form is gonna be that eighty eight twenty nine. So, be careful that if you have more than one home office that you make sure this box is checked so that you don't have the excess home mortgage interest that's not deducted here, flowing back to the Schedule a from two different 8829. So on the first one, you don't check this box. On the second, in each subsequent, if you have multiple, you check this box so you don't over report on Schedule a what the mortgage interest is. So that's the primary difference between direct expense and indirect expense, whether it's specifically for the home office or it's part of the house as a whole. And that carries all the way down. So let's talk about excess, excess mortgage interest and excess real estate taxes. So this is where we have the state and local, tax limitations that for 2025 and beyond are gonna be at a different level, potentially, depending on income, for some of your clients for the 10,000 in other years. So the amount that's not deductible again, related Again, related to the home office that are allowable, again, IRS publication is is very much your friend. And then the utilities, and if there's other expenses, security, comes to mind, HOA that might be in there. And then the amount of expenses that are deducted for a home office, and I'll show you this down below, but it's limited to the amount of the income of this activity. So if the income for this activity is a loss and they can't be deducted, then what's not deducted carries over to the next year. So at the bottom of this calculation, you may very well have a carryover of prior year operating expenses that comes forward to this year. That's why I love rolling over my tax returns from year to year and all of that information coming forward. Also, make sure that if you're putting in a new client for the first time, these are one of those little boxes that you need to go to the last year's 8829 and make sure you're picking up the right amount on. Okay. So now if you also have some excess casualty losses, again, there's to be carryover. So you're gonna fill that in here. Once we get down to all of this, then it's gonna calculate whether or not what the allowable expenses for your home is. Now we're also gonna talk about the depreciation. And so if if you have if you were depreciating the client's home as a portion of the calculation of home office, then I'm gonna tell you right now I'm a time junkie, and I love to do things that get me there quickest. And one of those is this quick zoom. And this quick zoom takes you to where you're gonna enter the home office. And one thing I wanted to point out is a home office is considered a commercial activity, and so it's deducted on thirty nine years, not twenty, twenty seven and a half. So, you'll fill out this information, and then you'll select if it's a home office or a home office improvement. But it's gonna be based on '39. So you just fill this out like you do, in in other places throughout, pro series in in setting up depreciation. We're gonna talk about that, later as well. But, you're gonna go through and just fill this out like you would any other asset. That's gonna bring over that's gonna calculate for you how much of the home office gets could it go back and take that square footage, factor this in, and just give you the depreciation amount. Or you can look it all up, determine what it is, put the numbers in here, and calculate it yourself, but I do I like to do it the easy way. Now you're also gonna have carryover of of unallowed expenses down here at the bottom. So this is very thorough. It has all of your options. The majority of what you need to remember on this is this is where you're gonna put the details in, the insurance, repairs and maintenance, utilities, everything directly related. And then up here at the top, you're putting in your mortgage interest or your real estate taxes, and it's not gonna flow over from your $10.98. Make sure you don't over report that. Now whatever you put on here and does not get included in the home office does carry to schedule a. And that's why too it's important to mark this box if you have more than one. So that, will wrap that up. So let me see where we've ended up here. We covered we covered our business use of the home here. Oops. So I told you about having more than one home office. I told you about the direct and the indirect expenses. Told you to be careful. You can still use the $10.98, but it's not gonna flow over. There's excess mortgage interest to consider. There's excess real estate taxes to consider, insurance, things you can deduct. And it's limited to the net income of the business in most cases. Carryover prior to your operating losses, casualty losses, thirty nine years. We got it. So we're gonna talk about partnership tax returns now. So let me just pop over into a partnership tax return, and let me tell you about what what we're gonna talk about. So, entering the basic information of the tax of the partnership, that's, of course, the first thing that we do, on on any client, whether it's individual partnership, corporation, s corporation. We have to start all of, that information and and get it in there. Line one of the return, that's pretty much trade or business. It kind of information. And let me get in here. I'm gonna show you what we're talking about. Okay. So here's, here's the partnership tax return. So line one, this is where you have a normal operating business for our partnership, and you're gonna put the receipts, and and cost of goods sold here. So, really, that's just a normal operating business, normal per se. One, two, and three, that gets you your income, your cost of goods sold, and your net income. Now what if this is a partnership that owns partnership? Then you're gonna come down to line four, and this is where you're gonna put in the information about the partnership, estate, trust, what have you. The name, the amount, the EIN, all of this information goes here. And then you can also have a partnership that owns the form that's gonna bring in information from the schedule f, if that's the if that's part of this. If you have sale of assets and you have a $47.97, then that's going to bring in that information as well. And then that that gives you your your income. So that's basically your your income, information that you're going to, gonna be seeing there. So where do we go after we've got just basic information in? We want to then we have to start adding the partners in partnership. And it's something that, you know, you get you enter the information regarding who owns it, but entering the partners to me can be a part of the task that really, can can take a lot it takes a lot of thought and application. So let me show you the partner information box for adding a partner to a partnership. So and and this isn't even it. I can't get it all on one screen because there is so much. So that's it, scrolling up. So I'm gonna cover this not line by line by line because there's so much we eat up the rest of the webinar, But in generalities, what what's to pay attention to? ID number, you know what that is, Social Security number or EIN of the entity. But look at the entities that you might have. Obviously, individuals, corporations, s corp, general partnership, limited partnership, limited partnership, limited liability partnership. So it goes on and on and on and on. And so you're gonna pick what the appropriate partner entity type is. So this is not that this is a partnership. This is the partner in this partnership, what are they, And you'll complete that. So in this case, we're going to just have an individual. And so, of course, we're gonna fill out the first name, last name. Now if we had said that this is another, say, general partnership, then we're only filling out an entity name. So once you pick the entity partner, that's gonna change the fields that you're completing. You're going to be entering the beginning and the ending balances. And if this is an initial k one or a final k one, you will be putting that percentage here. I'll show you where you go to put those when it makes changes throughout the year. Sometimes in partnerships, you have different loss percentages, ownership percentages, and there's also a name control. Remember, that's usually the first four letters of the last name. But on estates and trusts, that can get really fun to figure out what that is. Not too difficult, but a little fun. If it's if it's a foreign entity, you're gonna be putting that here, making sure you've got the the foreign country and the foreign country code included. If this is a disregarded entity, so what does that mean? So if this partnership has as its partner an LLC, but the LLC is a disregarded entity and the net income flows back to an individual, then that's a disregarded entity because you're disregarding the LLC that sits in the middle. Then you put that disregarded entity's name and their ID number. Now if you have a change in a partnership, ownership during this year and it's due to a sale or an exchange of a partnership interest, you've got boxes over here to check. And that's gonna, you know, spur you to make other reporting, you know, within, within this tax return. Now then you're gonna go to the capital and the basis. So, obviously, unless this is a new partnership, every partner would be coming into this year with either a both a capital basis and a, a a capital amount, a beginning amount, and basis beginning amount. Then you include the amount of contributions of cash and property that are made during the year, any changes in nonrecourse liabilities, the distributions of cash or property, and maybe some adjusted basis to distributions of property. And, you know, think about that sometimes you might have in a partnership where the partner's inheriting a basis from someone else and a step up in in basis. You might that might, you know, be something that happens. Then you're gonna check boxes on what kind of partner this is, general, live limited, final form, passive, initial. So, again, make sure you check-in on these boxes and make sure that that's correct. There is a box down here that says, if this plan is a retirement plan, check the box. And what that says is, if this is an IRA separate Keogh, we shouldn't be including that in or they won't they won't be getting that will be taxable income to them. So that will, carry forward that way. Now special allocations. I'm gonna go over, well, we're talking about that here, but I'm gonna show you within the return where this flows to. So, you know, partnerships can say, oh, this partner gets this percentage of the loss but this percentage of the, of the gain. So that would be like a percent a a buy ratio percentage. So here, you would come to this partner's percentage and put in that ratio. So maybe they hit 50% of the income but only 30% of the losses. Well, one, you need to make sure that for all the partners, these lines add up to a 100. But then I'll show you where else in the return you go to say use number one for this or use number two for this. So that's my ratio. I had a return that I did not too long ago for a real estate invest investment company, and they had about five different partners. And each partner had put in a different amount, And and their, agreement was that that they only received certain amounts. So we had to put in the amount that each partner was getting on these on on these by letter, and then that would flow to their k one for that individual line item. So it can be by ratio or it can be, by amount. And if it's by amount, we have to put that amount right there. Alright. Guaranteed payment for services, that that applies. You can put it here. Medical insurance premiums for the partner, guaranteed payments for use of capital, can be there as well. If you have net unrecognized section seven zero four gains or losses, showing you where to put those there. Now also if yeah. About the centralized audit regime, if you have clients that need to be included in the b two, this is where you come and click that box. And that will take that over to, I think it's page two, where you have that b two election, yes or no, area. Now if the partnership is required to do a K2 or K3 reporting, then you check this to exclude this partner from the K3 reporting. And then if it applies, you're checking the other boxes. So that's just entering one partnership. You know, it's not so don't daunting if it's a small partnership and, you know, a couple of individuals. But the more complex, partnerships that you're doing, then obviously, you might have a lot of information here that you make sure that you gather and get input, correctly. So that is your, that that's just your partnership, worksheet there. So I'm gonna stop recording here for a second, go back out to our slides, and make sure that we are covering what we want to cover. So I told you about entering the partners. Now let me tell you about removing the partners. So when you remove partners from the tax return, you you each tax return has the partners, sequentially. When you remove a partner, you have to go to also their k one. And so when you go to their k one, you remove it. For me, it's control w, or if you're on an individual page and you, it says remove this form, you can also go to, edit at the top form and say remove form. But I'm again, times I can control w, that gets me to the fastest. And that actually takes the k one worksheet out of the return. So if you've ever been like, why why can I not get rid of a partner? That's why. Go to their individual k one and remove their k one once you've deleted the information on that worksheet, and you delete the one. Okay. So we talked about allocating the income and losses by percentage of that amount. So let me, go to the k one and just a second here. We'll go back into pro series. Okay. So I jumped us over to a, schedule k. So here you can see special allocation. Here's the box. So here's where you're gonna put either a number or a letter. And so if we jump using quick zoom, you can see it took us. Okay. Do you want it by amount, or do you want it by ratio? So if I go back here, I'm gonna either put a one or an a or a two or a b. So this is this says, allocate this line item that's gonna come from the first page, the ordinary business income, line 23, by a different percentage than an ownership percentage. So that's how you get this number of where you want it to be. You you put that there. And this this column, the special allocation column, goes goes all the way down. So any of these line items that are to be allocated in a different way, that's where you're gonna want to put that special allocation. Alright. One more one more down here. So distributions. You know that when we're over on the, last page of the, the the meat of the, tax return that we have to put in the distributions that are taken. And so where that shows up in the tax return is in the middle of our schedule k or, you know, line 18, line 19, we have this smart worksheet that says, okay. So what was the distributions of of money, of property, of capital account? And, again, here's your box where you can put that special allocation so that if the distributions weren't equitable, you put in what your whether it's a ratio or a dollar amount, and that filters and and assigns to this k one, or or takes the amount from the the whole k one and allocates it to the individual k ones. So that's gonna give you how much distributions you get, to each of the individual, partners. Alright. And okay. So we've done that. And then the k one reconciliation. So the last thing that you're going to have to worry about is and this happens more if you're doing special allocations than if you're not. And that is, did you especially if you do it by amount. If you do it by amount, did all of those amounts add up to the the total? And if not, you're going to have an error message that says you're off. So you're gonna look at the k one. It says, you know, a thousand $12, and you're gonna look at how it got allocated, and it's a thousand it's $11. So you've got to make sure that one is probably rounding. And you go back to that special allocation by amount, and you fix that amount so the total k ones are reconciled. And that's gonna be the same if you're in a partnership or in an s corporation return. You're always gonna have to reconcile each of the k ones back to what's on the Schedule K, that's, you know, right above the balance sheet. Okay. That was a quick walk through the partnership returns. So now we're gonna go and talk about the s corporation returns. I'll talk about the the s corps first, and then, and then we'll go ahead and move over and take a take a little look at the the corporate tax return. But I just walked through entering the basic partner information for the partnerships. And it's it's very similar and actually a good bit easier once you're in the, S corp return. So let me show you what that looks like and then we'll talk about some of the other, information as well. Alright. Let me get here. Alright. So this is your k one worksheet. And here's you know, the I'll I'll I'll gloss over the top, the the part that's not different from the partnership. You have an ownership percentage here, and that's just pretty much one percentage. If you're if you've got numbers that change throughout the year, you're gonna put those in a table down at the bottom of this, worksheet. Now you've got your foreign information. You've got number of shares, which which you report initial and final because that'll flow to the k one when it's printed. But look here in the middle. You've got the, share holder information that can flow into the $11.25 e for time and business, common stock, preferred stock, and compensation. So if you fill that information out here on this Caitlin worksheet, it will transfer over to the eleven twenty five e. And the great thing is it will transfer from one year to the next, not the amount of compensation because that changes every year, but the other information. And, again, it saves time, which is what I'm looking for. If you have a a shareholder that doesn't need the k three, you can check this box here and, and exclude that. And if you have repayments of loan principal, then you can put that here in the k one worksheet as well. Alright. If we go back over to the first page of the eleven twenty s, of course, you have a little bit of different information to put in when you have an s corporation. You've got the s election date, the business activity numbers, the employer IDs, all this other information about final. Now s election term, s election termination you would put in, but also you're gonna put if this was the first year that this is a corporation electing s status. And you almost always have to check this if it's a first year return. I've even had where I've gotten the acceptance letter saying they accepted the twenty five fifty three and they were good to go, But I still ended up having to check check this box to get it accepted. Not sure why that happened. But if you file a return and you know it's been accepted in an s corp and it won't go, give that box a try, and that might be, the the missing link. Here, again, you've got your income. We just went through this on partnership return. Same concept. You have your gains and losses here. And then here again on this s corporation return is where you put the partnership estates or trust information, in here so that it flows into the return. Now, if you have other income, you put that here just like you would on any other return, and then you've got your deductions as you go down. Okay? So here we have the officer compensation. That would be $11.25, and that's gonna come from the shareholder worksheet. And then you have the salaries and wages. So you're gonna put that information in, credits, the general categories here, repairs and maintenance, bad debts, rents, payroll taxes, interest. Know that you can jump right to the $89.90 if you need to put that in for the, small business interest. And, of course, your depreciation comes in from, other areas. You have your pension and profit sharing, employee benefit plan, meals, and entertainment, and the deductions. So the normal calculations and the normal that you have done in the other kinds of returns are there. Sometimes s corporations have amounts that they pay, so that's gonna be, you know, information shown down here. And, it might have information that they carry forward. So the s corporation return, once you get over to the schedule k, you're gonna have, ten ninety nine. These are the questions that you see on most returns. You're gonna complete all those. Here again, you do have the, the multiple activities. So within this entity, you have multiple activities, then you check the box, and that's gonna add multiple k ones to be issued to the partners based on each or each activity, or at least the information is, you know, labeled out by k one. If you have rental activities, of course, that goes in as well, and there would be an $88.25, for each one of those. So when we get down, of course, we were we were talking about we've got the distributions that we would be reporting. There's the cash distributed to the shareholders, property distributed. And then when you get down here, so this is where we didn't go over this in a, in the in the partnership return, but you've got, you know, your balance sheet and all of your assets, and we're gonna cover that in a few minutes. But here you've got your reconciliation. Now I'll just tell you, I've I've been a CPA for thirty four ish years, and, I I have my staff check the box no. So what I want them to do is I want them to make sure that they're using the net income that's on the financial statements that has been adjusted. And so this is the number we're using and making sure that it agrees and that our balance sheet is not out of balance. But what I wanted to show you is down here at the bottom, you're gonna have your beginning of the year base, capital account, adding in the ordinary income, subtracting out the cash contributions in the meals and entertainment, subtracting the distributions, and getting to a net of, what the balance is that's gonna be up here on the retained earnings line. Now not until 2020 did we often see amounts in these other columns. But when we had things like PPP loans or, other EIDL, payments, then then some of those came and were in the other adjustments account because it was untaxed received monies or, I guess, you'd say untaxed income. So that's when if you had distributions and there's only certain cases where you can have distributions that bring this number at the bottom to a negative, often you'll see that this number can only come and be zero. So that's where you know, when you're reconciling and looking at, you know, did they have distributions exceeded basis? If you get here and this number is zero, but yet by your calculations, it shouldn't be, that's a big indication to you that you've got more work to do to see where, you know, date was too much distributed. Perhaps sometimes you'll have distributions that were actually loan payments, but they were miscoded. That's one possibility. So just a word of caution here. This is where you would go to take a look at that. Alright. So, moving on, we've got to stop within the and there's our s corp. We've been there. And so we're gonna look at the corporation, the corporate returns. Similar to the 11/20 s, you've got a net operating loss deduction. That's a big difference, of course, between the 11/20 s and the 11/20 Because 11/20 s, whatever your net profit or loss is, that flows through, and each year kinda stands alone. But with the 11/20, you have that prior year net operating loss that could very well, be carried forward from a prior year, and and then you're gonna wanna use that information. So I'll get that open and and let you see that here in just a minute. But also there's other kinds of November. So I'm gonna show you in the pro series where that box is for an 11/28. I actually did one of these today. So here, you're gonna enter the information about the return like you normally would. But if you need an 11/28, you're gonna click that, and it's gonna add up here to your forms menu your eleven twenty h. So know that those have to be mailed, not electronically filed. So if you if you do those, there it is. And, of course, you've got all your regular information out here that you're gonna you're gonna fill in. But if we go to the tax return, of course, you got different questions at the top that you're gonna answer. And then we're just gonna scroll down. And this is where you'll see the net operating loss deduction. And so you've got a quick zoom that'll take you right over to the net operating loss, worksheet. So this is where, you're gonna go and fill in the prior year's net operating losses. Now, of course, I'm assuming that this is a new client to you because if it's a client you've had for years, gloriously, those prior year to net NOLs roll forward. And, you know, we have a a great, we have we we could use that and and don't have to go back and input all that information ourselves. So that's extremely helpful in, in getting that number calculated quickly. And, no, that recent tax law changes don't allow a 100% of the loss to be used. So if you have net income this year and are bringing forward a net operating loss, roughly, 80% can be used. So you're still gonna have 20% taxable income. So that's gonna calculate down here. The amount of tax that's due is gonna be calculated. And like like in any other, program in ProSeries, you've got a, calculator for penalties if if taxes are paid late. And you also have a tax payments worksheet so that the payments that were made or carried forward from prior years or whatever is, is recorded in the in the tax return and then updated to the first page. So that and and that would be I'll get you back up to the top so you can see where I am at schedule j. But I love the quick zoom. I've I've never used another tech software before in my entire career. Thirty six years, I've been working in accounting and and working preparing tax returns. I've never prepared tax returns in other years, but I've acquired a few firms. And I've, I've had to look at returns and other software to to see parameters. And I love the quick zoom in here that it you can jump from one place to another. Maybe all of the other time, but I don't know. But, I know we do love and appreciate that. One of the other things, if we go to the the the balance sheet section, of course, you've got all your questions. And and on 11:20, there's a lot more questions in to fill out than there is before, and sometimes you need statements that that jump you to somewhere else. But you also might require to complete an m three. And if you do, that's going to be in this section. That's with net income or loss over a million dollars. So that's when the m three gets gets activated and has to be completed is is when that net income or loss is over $1,000,000 So let me, keep moving on here. I wanna make sure that we get to everything. So here is next thing we're gonna talk about is the balance sheet because I think that, individuals, or younger, newer tax preparers, however you wanna look at that, struggle a little bit on the balance sheet. I'll just say for me, the the way I approach it is and, and and sometimes I have a a, you know, a contest with myself on how quickly can I do this tax return accurately? And so my my most efficient way to prepare tax returns is I put the net income in first and reconcile that to the page one. Sometimes there's adjustments. Maybe you're you're all done except the depreciation because you gotta make sure the new assets are in and the appreciation is there. And then your m two has your reconciliation of retained earnings just like in the s corporation. Each one of them has a reconciliation. And so you're you're going to input all of that. And in the balance sheet here, we have, we have subaccounts. So each field can have a supporting statement. Tell you I've been using ProSeries for thirty four years, and I learned not too long ago watching someone else's, webinar. And I'm gonna show it to you because I can't believe I didn't know it. But if you have a field that's gonna go to a quick Zoom I thought, wow. I really kinda wanted to put a supporting statement there and not go to the quick Zoom. You can. You just right click and right click and go to supporting statement. There you go. You can also mark these fields as estimated. Little little side there. But, so in these cases, so your other current assets where it says attached statement, the statement's already here for you. You just jump here and add this information in, and it flows back to the return before. And these all carry over from the prior year. So that saves so much time, in my opinion, that the last year's is all filled out. You just put this in year's information and it calculates. The other thing that I like that's new this year is the accumulated depreciation worksheet. That's right that that adds to the let me find it here. That that adds the assets. I might have to go back to the s corp return. So it takes and it adds the new assets, and it adds the depreciation amounts so that you're sure that everything is going to be in the right in the right spot. So, that's a really good, reconciliation tool. We always did that, you know, outside of the tax return, but now it's just in the tax return. So you don't have, an instance sneak by you where you you didn't didn't add an asset that a client had, and it didn't get added to the depreciation. Alright. So that's the balance sheet. Prior balances rollover, as I mentioned, you have the supporting statements. And then in the lower right corner right down here is the out of balance. So, when I'm doing my little how am I doing time wise, I go in and I put everything down and then it's like, does it does it agree? And that's the amount that's out. And I I have to make sure that I remind my staff, don't ever look for the amount that's out. Because if you if you look for the amount that's out, you're going to be over one way and under another. Alright. We're gonna move on to our, last topic of the day, which is the qualified business income deduction. In the, tax law that recently passed, this was made permanent. So we'll have the qualified business income, deduction to work with for a go forward basis. So where this is calculated is on form eighty nine ninety five and eighty nine ninety five a, but it's in the individual tax return. So you're going to have information that is prepared, accumulated, recorded in your s corporations and in your partnerships, not the c corp, but s corps and partnerships. And the information on the k one flows out, and goes into the individual tax return. And so you have, if you have all that accumulated in the individual return. So the QBI income component worksheet, I think I have a little screenshot of it here. Here's what it looks like. And so if you have a k one, either from a partnership or from an escort, You're going to have this worksheet in your tax return. But also, if you have a Schedule c or a farm or rental property in the ten forty, that information is also gonna come back to one of these worksheets. So just keep in mind that your QBI deduction, comes into the ten forty return and has to be added up and aggregated for all of the different activities that have, one ninety nine a repercussions, including on your schedule b. And I'm gonna see if I can get into a individual return here real quick and show this to you. But where it is is on schedule b on the supporting worksheet. Oh, I have a here example. The one ninety nine a dividends. You just put the amount that came on the, two ninety nine b that the client would have gotten on that line item, and that would also flow back to this QBI deduction worksheet. So W-two wages, UBIA, that all gets calculated activity by activity. So k ones, s you know, Schedule C, that's that's all gonna be in there. And so on the Schedule C at the top, this asks the very first question, the first line, is it qualified for QBI? And if it does, at the bottom of the Schedule C, there's your QBI deduction smart worksheet. So when you go down in the in the bottom, you know, sometimes there's adjustments that have to be made, then that's where your smart worksheet is. That smart worksheet goes over to the summary worksheet. The summary worksheet rolls up and then you get what's reported on the eighty nine ninety five. And then the eighty nine ninety five is what goes over to the first, part of the return, and your QBI deduction is calculated. So, the the the roll up of QBI, when you're tracing this back down through all of the steps is a lot. And so I'm always wanting to make sure that I got all of the QBI information in. I mean, you know, the potential that a a taxpayer doesn't pay tax on 20% of their income related to this is is significant. So we wanna make sure that, we you know, that we've got all of that in there. So I'm gonna do one last little screen share, and I've got a individual return up, and I'm gonna show you that QBI summary worksheet. So we're here, and we're gonna go to QBI. And so here it starts the worksheet. And so, oh, this is this is a yeah. So this is the eighty nine ninety five a, which is the specified service trades or businesses. So, you know, this is where you go to see everything that flows into this return and gets added up. And then you can go back to the page one and see you what the actual QBI. So, you know, the the QBI is is great, but you wanna make sure that you've really, gone through and and, looked at all of that. When you're on s corporation return, it's line 17. And so here's your one ninety nine a information. Here's your quick zoom. This is where you go and you make sure that all of this information is checked. And if it is an SSTV, make sure that you check the box because there are, you know, limitations, of course, if it is, potentially, depending on income levels. So you wanna make sure that, that that you've checked that box. Wow. We've, we've made it. So we've covered our agenda today. And let me show you where we are. We're gonna have one more poll, and that is, if you're here to learn more about the product before you buy it, then please let us know in this poll if you would like a call from a sales specialist. And, you know, sometimes you just want to wanna go more information. So, hopefully, this was helpful. So I'm gonna give you just a few minutes or not minutes, half a half a minute to answer the poll question. Not not difficult. Just lets us know that you are here. So just a little bit more time will give you. Alright. Alright. I'm gonna go ahead and close the poll. So thank you for entering that. Didn't have to think on it too hard. So the business use of the home we talked about, the $88.29, that's in the, individual tax return, lot to that, lot can go into that. Kinda gotta scope that out before you get to putting the numbers in there, and make sure you don't over report the information to the Schedule a. The ten sixty five partnerships, make sure that you get those k one worksheets for each partner filled out completely. That's where your your your health is going to be and making sure that you have a really good accurate return. Eleven twenty s, again, partnerships, you or like the partnerships, the k ones, you wanna make sure you've gotten the information on the partners correct and that the distribution information is the same. Goes the same for the partnership. The corporation, net operating loss, you saw that on the first page. Make sure you've got the right amount that's being applied forward. And I didn't touch on it, but I'll just say here, make sure that the the amount that flows through to the state for the net operating loss is is accurate too because sometimes that can be different. Balance sheets, those are a piece of cake if you've got your good set of financial statements. But make sure that your new assets and your accumulated depreciation and amortization, are on that supporting work work statement, and that really helps make sure everything ties in. And then QBI, now permanent. So we wanna make sure that we understand it thoroughly, that it's flowing through our tax return properly and, you know, gets, put in the right place for our clients. Next steps, we have other upcoming webinars. I host a few others, so I would gladly see you in another webinar. Hopefully, this information was helpful. I consider your time as very valuable and appreciate you being here. There is a survey link. If you give us feedback on how we can make these webinars better, we take that to heart and make sure that your time is well spent. If you wanna save the handouts, you can do that and download those. And you can always log back in going into the link that you've got in the email today. If you're looking for more free training and resources, you've got the Education Center. You've also got the Tax Pros Center. So there's a lot of information there that you can use to, get self paced webinars, important articles. So, I spent some time there. When I'm looking for something, that's where I go, and look for more resources. In the support community, I needed to to get an answer just the other day, and that's where I ended up and got my answer very quickly and moved on. And, wrap up. Your CPE certificates will be emailed within about twenty four hours. Your CE will be reported to the IRS using your PTIN if you've provided that. Give it about seven days, for it to take effect. And just just wanna say, you know, thank you very much for, joining today. I am enjoying trying to help my fellow practitioners just a little bit, get ahead of, of the game and be able to use ProSeries, you know, to its fullest. Thank you so much.