Brokerage accounts and Balance Sheets

Forum|Forum|5 years ago
March 7, 2021
1 reply
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Hi,

I have a LLC that files as a C corp that holds investments in a brokerage account. The assets this year fall above the $250,000 cut-off for requiring a balance sheet in Turbo Tax Business. My Brokerage account paid out ~$3000 dividends that I need to pay tax on but the stocks that I have not sold have increased this year but I still hold them and shouldn't need to pay capitol gains until I sell them. However, the beginning year and end year difference for the brokerage account difference make is so that my balance sheet does not balance. I am the sole owner of the LLC so I does the balance sheet need to balance for me to file?

How do I account for the discrepancy in my brokerage account in order to balance the sheet?

Thanks

TurboTax Business Windows

Rick19744

Employee

The balance sheet is to be reflected based on your internal books and records which will not agree to your tax books and records.

I believe most of the items on the balance sheet are input manually.

Do you have an M-1 for unrealized gains on line 7? You should and possibly this will fix your issue, but not absolutely positive.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

jc152

Hi @Gregg6 I'm in the same boat as you. What did you end up doing? Did you take @Rick19744 advice and enter unrealized gain/lost under M1 line 7? In my case it's unrealized lost. If you can share how you balance your book that'll be great. Thanks!

BrittanyS

Unrealized income or losses are recorded in an account called accumulated other comprehensive income, which shows on the owner's equity section of the balance sheet. This category represents gains and losses from changes in the value of assets or liabilities that have not been sold.

@jc152

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