Sec 645 Election and Turbo Tax Fiscal Year ?

Forum|Forum|3 years ago
February 24, 2023
2 replies
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I'm using TT Business 2022 for a 1041 Trust Tax Return — I previously made a Sec 645 election in order to use the fiscal year beginning 11/2021 to 11/2022 and mailed Form 8855 to the IRS. I also applied for an extension on this return. However when I run the ErrorCheck in the return it flags all of my Schedule D entries "Date Sold is not a date in the current tax year" most likely because it spans the 2021/2022year.

Can this safely be ignored or is there some other setting I have not done correctly?

TurboTax Business Windows

Best answer by Anonymous_

You are using the wrong version.

The 2022 version of TurboTax Business (with respect to the 2022 1041 for estates/trusts) can be used for fiscal years beginning in 2022 and ending in 2023. It can also be used for fiscal years beginning in 2023.

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285980

You actually need the 2021 version of TurboTax Business since the fiscal year began in 2021 and ended in 2022. The dates will not align properly for you with the 2022 version.

DianeW777

Yes, if you are going to mail the tax return you can ignore it. If you haven't tried using 'Various' as a date acquired you can try that, however using that for the date of sale would not be a recommended option and would likely provide errors as well. If necessary, and only if your forms do not print correctly (not anticipated), you can enter a date in 2022, then correct it when you print it out, and before mailing.

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Anonymous_Answer

Employee

You are using the wrong version.

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285980

You actually need the 2021 version of TurboTax Business since the fiscal year began in 2021 and ended in 2022. The dates will not align properly for you with the 2022 version.

jhouse78Author

Thank you, I understand now. If I’ve already completed most of the return in TT 2022 does that mean I have to buy TT 2021 and do it over again?

Anonymous_

Employee

@jhouse78 wrote:

Thank you, I understand now. If I’ve already completed most of the return in TT 2022 does that mean I have to buy TT 2021 and do it over again?

If you want to do it the proper and correct way, you do.