Turbotax Business 2023 - Credit Card balance entry and Balance sheet

Forum|Forum|2 years ago
February 24, 2024
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While filling out the "Enter Your Liabilities and Capital" page -

I'm using Cash-based accounting for an online retail business

-Which line do I enter my credit card balance in?

-Do I enter it as a positive or a negative number?

-Currently if my cash+inventory in "Enter Your Assets" = X,

and I enter CC balance = Y as positive number,

Turbotax shows "total for liabilities and capilat equals X+Y"... How can that be right?

TurboTax Business Windows

Best answer by PatriciaV

For a cash-basis company, there are no liabilities on the balance sheet. The accounting equation for the balance sheet is that Assets = Liabilities + Owner's Equity. If you have cash and inventory, the total of those two should equal your owner's equity line. All numbers on the balance sheet are normally positive (there are exceptions that don't apply in your situation).

Note that you can skip the Balance Sheet section if:

Total business income (before deductions) is under $250,000; and
Your business is not filing an Alabama, Connecticut (non-partnership), District of Columbia, Georgia, Kentucky, Louisiana, Massachusetts, Mississippi, New Jersey (non-partnership), New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, or Tennessee return; and
Corporation year-end assets are under $250,000 or partnership/LLC year-end assets are under $1,000,000.

If you qualify, see: How do I turn off the balance sheet?

PatriciaVAnswer

Employee

Note that you can skip the Balance Sheet section if:

Total business income (before deductions) is under $250,000; and
Your business is not filing an Alabama, Connecticut (non-partnership), District of Columbia, Georgia, Kentucky, Louisiana, Massachusetts, Mississippi, New Jersey (non-partnership), New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, or Tennessee return; and
Corporation year-end assets are under $250,000 or partnership/LLC year-end assets are under $1,000,000.

If you qualify, see: How do I turn off the balance sheet?

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