NJ CBT 100S Schedule C

[jeffrey1]

Schedule C of Form CBT 100S is basically equivalent to the Federal Schedule M-1.

On the 2019 form however, you are asked to reconcile net income per books to the income on Schedule K, Part II, Line 8.  In previous years we reconciled to Schedule A, Line 31.  

Furthermore, Sch C indicates "Data must match amounts reported on Schedule M-1".

This is not possible, as Schedule K Part II makes NJ adjustments to net income not reported on the Federal tax return.

I think when NJ changed the form, they made a mistake and as in prior years they want us to reconcile to Schedule A, line 31.

Problem is Lacerte is forcing Sch C to reconcile to Schedule K.

[Kerry R]

I noticed this as well. Are you overriding fields to make it work, or waiting for another update from Lacerte to fix it? 

[jeffrey1]

Waiting (and hoping) for an update.

[stephen]

Is there an anticipated date that this will be resolved?

[jeffrey1]

Don't know

[karasik78]

I spent 3 days 2.5 hours each time on the phone with lacerte trying to explain why it is not possible - no result

3/30/20 was told to wait for NJ update 

4/2/20 was told - "live with it, and fix on your own" NJ law is NJ law......didn't get it

[jeffrey1]

I forced the Schedule C.  I made the Net income per books agree with the

Federal M-1 and the hell with it.  I e-filed the NJ return and it was accepted.

[karasik78]

How did you force Schedule C?

[jeffrey1]

My problem was that The NJ Schedule C reflected the additional 50% of meals and entertainment that was fully deductible on Schedule K.  This caused my net income per books to be incorrect.

I went to Screen 31.1  - Expenses recorded on books not included on Schedule K.  Under Other - Other - Control E  - I placed a Zero in the Federal Column and a Negative figure equal to the NJ Entertainment adjustment made by Lacerte.  Place "NJ" in the State Column.  This made the NJ adjustment on Sch C disappear.

I also made a small Depreciation adjustment on this screen equal to the depreciation adjustment reflected on Schedule K.  So at the end, my Net income per books on Schedule C agrees with the Federal M-1 and NJ Sch C Line 8 agrees with NJ Sch K Line 8.

Best...

[rzamloot]

Yes, the 2019 Form CBT-100S, Sch C is very confusing at this point.  Schedule indicates on top "must match amounts reported on Schedule M-1 of the federal return", yet Line 8 clearly indicates that it must agree to NJ Sch K, Part II, Line 8 (which is NJ "taxable income").  The Sch C is locked into the Sch K, Line 8 amount and you are forced to make adjustments in screen 31.1 to reconcile back and get to the correct book income figure.  I spent over 2 hours on the telephone over 2 calls with Lacerte support.  Apparently, NJ made this change late in the game and Intuit hasn't put in a fix for it, hence the mess that we have in its current state.  I hope Intuit cleans this up for 2020 forms.

[jeffrey1]

It's unfortunate when the people who create the software, don't understand what the end product should look like.  It's even more unfortunate when they don't seem to care.

[karasik78]

Its a shame, that this software cost is so high compare to the level of customer Service. I spent 8 hours (4  times x2h each, maybe more) with them, during the season! 2 out of 4 promised that they will fix this BUG. We are still there....

[karasik78]

I also spent 8 hours with them, they didn't fix anything, even though promised. 

I showed them 3 items that creating issues that need to be addressed (or adjusted by me if not addressed by them) It will be ridiculous for me to go to each e-filed and accepted tax return and adjust it because now it is not balancing. By the way, NJ due date 3/15, they released final version on 3/13, and 3/24 they did update.... how beautiful ....

So, 

NJ meals - should be 100%, not like feds 50% - we need to add it back on Schedule C

NJ depreciation adjustment needs to appear on NJ Schedule C (it doesn't go there automatically)

NJ Corporate Tax Payments - not reflected neither 

Hope it helps 

[KennethS]

With 2019 release (version 40.0324) the calculations for New Jersey S-Corporation returns have been updated which is causing the balance sheet to be out of balance. The calculation on the 2019 NJ CBT-100S, Page 7, Schedule C, Line 8 has been updated to match the form which indicates to use Schedule K, Part II, Line 8. This change impacts the calculation of the New Jersey, Net Income per Books calculation.

Previously the amount utilized was from the Schedule A, line 31 which was used in the prior years forms.

• Lacerte calculates the net income per books beginning with the Schedule C, line 8 and works backwards to calculate the net income per books.
• Schedule C adjustments may be needed to ensure the Net Income per Books are calculated correctly for Schedule C, line 1.

At this time, preparers will need to account for these adjustments in the Schedule M-1 screen under the State, if different column.(31.1)

In prior years, this was never required for the schedules to align and there were always differences between the schedules. 

[jeffrey1]

I am a long time Lacerte user. I brought this situation to Lacarte's attention during February or March 2020.  Lacerte staff told me the program computations were correct and if I don't like their computations I could always overide.  Unfortunately, it seems to me Lacerte is not interested in getting it right.