Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Electing small business trusts (ESBT)

Calculate an ESBT return

Before you calculate the return as an ESBT, make sure all ESBT data entry is complete.
Follow these steps to calculate an ESBT return.
  1. In the Organizer, go to the
    General Information
     folder and select
    Basic Return Information
    .
  2. Select the
    Electing Small Business Trust
     checkbox to code this parent as an ESBT locator.
  3. Select
    Calculate ESBT
     to calculate and create a 2nd child locator. The locator number will show in the
    ESBT child locator
     field.
    ESBT-only items are sent to the child locator and recomputed for ESBT purposes. Final computed amounts for ESBT purposes are then automatically pushed back into the parent locator and displayed on the existing ESBT Worksheet. To view this, go to
    Tax Forms
    ,
    Federal
    , and select
    ESBT Calculation
    . You can enter overrides in this worksheet (for the parent only).
  4. Open the child locator as a separate return and print ESBT-only forms as needed.
  5. If you need to make changes to amounts, enter them in the parent locator only. The child locator exists for reviewing and printing only.
  6. If you made changes to the parent locator, re-do the
    Calculate ESBT
     process.
  7. If the ESBT child locator needs to file Form 8990:
    1. Enter all data in the same order mentioned previously. You'll need to create the ESBT child locator 1st in steps 1-9 before selecting
      Form 8990 Calculate 8990 Amounts
       at
      Organizer
      ,
      Deductions
      ,
      Section 163(j) General Information
      .
    2. Once the ESBT child locator is created, you can open the child locator and perform the 8990 updates. This will calculate Form 8990 for ESBT purposes only.
    3. You'll need to then reopen the parent locator and select
      ESBT Calculate
       again to bring the updated ESBT-specific Form 8990 amounts back to the parent locator and update the ESBT worksheet accordingly.
    4. If both the parent and child locators need Form 8990, after completing the previous steps 1-3 for the child ESBT locator, you can redo step 2 inside the parent locator to calculate Form 8990 amounts for non-ESBT activities.
  8. Perform all e-file steps from the parent locator only.
  9. The ESBT Worksheet amounts in the parent locator will e-file and report ESBT amounts as normally done.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close