Where & how to report a transfer of income from checking to savings form 990-EZ

Forum|Forum|5 years ago
June 5, 2021
2 replies
17 views

Non- Profit reports the transfer as an expense.

Lacerte Tax

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Best answer by IRonMaN

Then the non-profit is reporting it wrong. A transfer between bank accounts isn't an income or expense item.

IRonMaNAnswer

Level 15

Then the non-profit is reporting it wrong. A transfer between bank accounts isn't an income or expense item.

Slava Ukraini!

N

Nicolas2008Author

Level 2

Thank you! I appreciate your time.

qbteachmt

Level 15

What's "Non- Profit?" A business that makes no money and is going broke! Ha ha ha.

I think you mean Not For Profit entity. What matters is the type of entity and its accounting standards requirement and why the funds were moved.

You might treat it as Expense for the financials is if you also are treating it differently for Fund accounting. Example: Your General Fund transfers as Expense an amount to be held for Restricted Programs, so this would be a type of General Fund expense. A town has to do something similar, such as General Funds transfer is used to buy Road Department equipment.

Don't yell at us; we're volunteers

N

Nicolas2008Author

Level 2

Thank you for correction, i.e., Not For Profit! I appreciate the accounting lesson. Giving the example is helpful.

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