davetodd11
Level 5
10-05-2021
02:42 PM
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I am taking over a trust clien/1041 return, and don't have experience with the Form 1116. To ensure I've got everything accounted for, and establish a historical record for the trust in ProSeries in preparation for next year, I've taken the source docs that were used to prepare the 2020 return and compared my results to those of the previous tax accountant. In ProSeries, Form 1116 Line 3e cross-references to Form 1041 Line 9. However, the previous preparer used a separate worksheet to calculate the line 3e amount and excluded the gross capital losses from their 3e total.
The IRS instructions for Form 1116 indicate that line 3e should include " ... capital and ordinary gains (before subtracting any losses) ...", which seems to coincide with what the previous preparer was doing, but contradicts what ProSeries is doing. Is this line one that ProSeries is just miscalculating, and needs to be overridden?
The IRS instructions for Form 1116 indicate that line 3e should include " ... capital and ordinary gains (before subtracting any losses) ...", which seems to coincide with what the previous preparer was doing, but contradicts what ProSeries is doing. Is this line one that ProSeries is just miscalculating, and needs to be overridden?
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PATAX
Level 15
10-05-2021
04:44 PM
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Maybe get the original Source documents and enter the information directly from there and see if you can match up... Also in 1040 module I believe you don't have to print out the actual 1116, maybe same for 1041, I don't know.. Hope this helps
davetodd11
Level 5
10-05-2021
05:40 PM
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I've taken the source docs that were used to prepare the 2020 return
sjrcpa
Level 15
10-05-2021
06:27 PM
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Previous preparer was correct. Software output is wrong.
The more I know the more I don’t know.
davetodd11
Level 5
10-06-2021
03:59 PM
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Thanks for confirming. The more I dug into it, that seemed obvious, but I thought maybe I was just missing something. I was trying to report it to Intuit to have them look into the error, but there doesn't seem to be a way to reach them outside of these community message boards. Is there a way.
