Enter construction in progress

Forum|Forum|3 years ago
February 16, 2023
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Filing LLC S-corporation and in 2022 I spent $150,000 towards a commercial office building that is still in progress. Do I enter the $150,000 invested so far on the 2022 Business return? If so, where exactly do I enter that number? Does it go under: Buildings and other depreciable assets?

TurboTax Business Windows

AliciaP1

Construction in progress is a short-term asset account that should be listed on your balance sheet only. You should not capitalize/depreciated assets until they are complete and in service. You are not required to complete the balance sheet portion of your return if the S-Corp's total receipts AND total assets are less than $250,000 each for 2022.

To enter your Construction in Progress in TurboTax Business you can follow these steps:

Within your tax return, under the Federal Taxes tab and Balance Sheet enter your Total End-of-Year Assets
Answer the questions until you get to the Select Your Balance Sheet Account Entry Method screen
- If you just need to add one account amount the Quick Entry button works best
- If you need help entering all the info from your balance sheet, select Guide Me
Under Other Short-term Assets list your Building CIP account and the $150,000 (listed in your question)
Proceed with entering the rest of your balance sheet and verify it's in balance by following the TurboTax Business prompts