How do you include the change in value of an investment account (stocks, bonds) for an S Corp on the Balance Sheet, P

Forum|Forum|5 years ago
March 9, 2021
2 replies
25 views

S Corp's 1099 shows cap gains of $1,789. Investment account started with $9k and shows a value of $9,978 at year end. How do I show the drop in value of $811 on the return? Does Sch L need to show the $9,978 or can it just show $10,789?

Lacerte Tax

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IRonMaN

Level 15

You don't show a drop in market value. You only show a drop when they actually sell the stuff.

Slava Ukraini!

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Elias TaxAuthor

Level 2

Totally get that. But if I'm showing a book basis balance sheet for the S Corp, does the value of their investment account at 12.31.20 need to tie to their statement or should it just reflect the original investment plus cap gains according to the 1099 they received?

qbteachmt

Level 15

You might want to read this article:

https://www.investopedia.com/ask/answers/04/021204.asp

Don't yell at us; we're volunteers

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Elias TaxAuthor

Level 2

Totally get that. But if I'm showing a book basis balance sheet for the S Corp, does the value of their investment account at 12.31.20 need to tie to their statement or should it just reflect the original investment plus cap gains according to the 1099 they received?

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