Question

Balance sheets

Forum|Forum|6 years ago
February 21, 2020
1 reply
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My balance sheet will not balance.

The LLC sold a rental property in the tax year at a loss. The partner capital shows a substantial loss because of this and depreciation. Because of that the balance sheet will not balance. I've spoken to the help person who suggested I delete and start over which I did. It did not help.

What can I do to resolve this issue?

Does turbo tax have a way for me to submit the tax documents to someone to help me.

A

Anonymous_

Employee

@mebrown51 wrote:
Does turbo tax have a way for me to submit the tax documents to someone to help me.

To be blunt, you need to understand that the balance sheet is not exactly a tax document; it relates to financial accounting more than income taxation.

If you post your figures (even hypothetical figures), then someone may be able to help.

Otherwise, with respect to the sale of rental property, part of your problem might be because there was no corresponding increase in cash (i.e., an asset) on the asset side of the balance sheet. If the LLC sold property, even at a loss, the LLC most likely still received something of value in return.