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.
- In the Organizer, go to theGeneral Informationfolder and selectBasic Return Information.
- Select theElecting Small Business Trustcheckbox to code this parent as an ESBT locator.
- SelectCalculate ESBTto calculate and create a 2nd child locator. The locator number will show in theESBT child locatorfield.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 toTax Forms,Federal, and selectESBT Calculation. You can enter overrides in this worksheet (for the parent only).
- Open the child locator as a separate return and print ESBT-only forms as needed.
- If you need to make changes to amounts, enter them in the parent locator only. The child locator exists for reviewing and printing only.
- If you made changes to the parent locator, re-do theCalculate ESBTprocess.noteYou'll get an overwrite warning for the existing ESBT return. SelectOKto update the ESBT return for the changes made, or selectCancelto not complete the process.
- If the ESBT child locator needs to file Form 8990:
- Enter all data in the same order mentioned previously. You'll need to create the ESBT child locator 1st in steps 1-9 before selectingForm 8990 Calculate 8990 AmountsatOrganizer,Deductions,Section 163(j) General Information.
- 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.
- You'll need to then reopen the parent locator and selectESBT Calculateagain to bring the updated ESBT-specific Form 8990 amounts back to the parent locator and update the ESBT worksheet accordingly.
- 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.
- Perform all e-file steps from the parent locator only.
- The ESBT Worksheet amounts in the parent locator will e-file and report ESBT amounts as normally done.notePrint any forms with ESB-only calculations you want for e-file from the child locator and attach them as PDFs in the parent locator through the normal PDF attachment procedure.
