Tax Map to Schedule K-1 Capital Gains?

CG flows from the schedule D. Direct mapping to the K-1 makes no sense.

Schedule K-1 line 8 is short-term capital gains and line 9a is long-term capital gains. So apparently it makes sense to the IRS. S-Corporation or Partnership might calculate the gain on Schedule D, but eventually it has to pass through those gains to the shareholder on K-1?

And in Quickbooks I don't see a way to map a capital gains income statement account to a Schedule D either. Quickbooks does have tax mapping lines for other kinds of income on the K-1, For example, I can map dividends to "Schedule K-Porfolio Inc (Loss): Dividend income".

How in the world can you map to schedule D from QB? The last time I looked (which was 1 minute ago) QB does not track security sales.

The first problem to solve is how to *book* capital gains in Quickbooks. That's part of our reconciliation process for brokerage accounts. When a security is sold, the capital gain shows up in a capital gains account in the "Other Income" section of the income statement. I don't think the detailed mechanics of how the transactions gets booked should matter to this question. Suffice it to say that if one wants to show capital gains transactions on an income statement, then any accounting system can probably be adapted to show it.

Having created an income account to hold that kind of income, the tax question is how to map it to the tax software. I'm just pointing out that Quickbooks doesn't give me a way to map the account to either the Schedule D of the S-Corporation or the Schedule K-1.

Look for the file BUSTAX.SCD

You can add new lines to it following the patterns of existing lines for schedule K-1 inside the file.

I wrote at more length on this type of modification in a response just a couple/three weeks ago...

In essenece, simply make a backup copy of the file before you start, close QB, edit the file and find the section K-1 w/ a search command.

The LYNPC/LYNPD key is C for a credit/D for debit item. The numeric value in the first column must be unique throughout the file but it doesn't need to be consecutive or any other specific value.

Save the file and restart QB and voila! you're new tax assignment code will show up in the drop-down list...

That is correct. The program only provides those lines in the Sched C & 1120 that would be direct assignments. Sched D and the K-1 forms are not supported in the selection of tax forms in the Company information screen.

But surely S-corporations and partnerships pass through capital gains to their owners all the time, so why wouldn't Quickbooks anticipate that need?

The high end Intuit tax packages like Lacerte do have the ability to process that information, so strange that the data that feeds those tax packages would not allow you to supply the information.

W wrote: ...

WHY??? Who knows what goes on inside those little noggins at Intuit?

See other response directly to your first posting (I didn't realize the actual question earlier, sorry).

You can add tax codes to the file BUSTAX.SCD which will then show up.

The other posting gives details on the how...

On what line in the 1120 would that information go? If it is entered on a worksheet in the tax program then QB does not include a tax line.

I believe it is entered on a worksheet. QB does not feed worksheets or at least that is my understanding.

And unless you are importing your QB file into Lacerte or ProSeries the tax line mapping is irrelavent because you never are going to use it. You give your tax preparer a copy of your financials and they manually enter the data into the various forms and worksheets in the program.

Laura wrote: ...

What thinketh thou somebody else wouldn't use it just because you don't??? I use the correspondence every year...

For some populations of "you", I suppose that's true. Not universal, however, certainly.

I use the tax assignment reports and some other customized reports to quantify/stratify income/expense according to farm categories vis a vis gas/oil royalties, and the various expense categories. The forms are created from there.

I will bet you are correct about that. Probably the tax software wants to "calculate" the capital gains from actual purchase and sale data, so there may not be a place to upload a single bottom line number.

We import to Lacerte directly, which has proven a great way to better understand the work the accountant does.

Dude its a rhetorical question.

Intuit's professional tax programs do not have that ability. It is up to the tax professional to enter the capital gains transactions manually into the schedule D portion of the tax software.

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Well, shoot, in looking I now see it was you asking the question that I responded to then...did you not follow thru on the solution????

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I was not crazy about the idea of changing the default entries in an Intuit supplied file, especially since it might get overwritten during an upgrade later.

In this particular case, others are pointing out that tax package really wants a lower level of information fed into Schedule D, rather than the summary capital gains numbers.

W wrote: ...

One has to choose which is more important desire, granted; current facility to accomplish something against keeping file up if changes made and do upgrade. In this case it would be a fairly trivial exercise but some may not see it as such, agreed.

That's a more serious reason if can't accomplish what you want, anyway...