business returns
Total Views: 46
do I need to amend a corporate income tax if in the balance sheet shows an incorrect amount on depreciable assets. The asset was not depreciated. In the balance sheet the assets and liabilities are understated.
Answer
That depends. Was the amount arrived at because expenses were not properly reported or does the balance sheet contain other errors that offset the asset error?
Answer
We need more information as IRMN stated. If it is just a balance sheet reclassification then the problem may not be as severe. If the assets were not properly depreciated then the problem is worse. We need additional information as to exactly what the problem you encountered is
Answer
You will need to correct and file an ammended return to correct the depreciation expense on the undepreciated assets that need correction
Answer
Is that a change that's going to require a Form 3115? I'm just sayin'.
Inside of a dog, it's too dark to read.
~Groucho Marx
Answer
Mt Juliet is correct about amending to correct for the depreciation error. Was the asset financed and that's why liabilities are understated or are there other errors on the return.
Comment
The asset was not depreciated. In the balance sheet the assets and liabilities are understated.