Using the 2012 Program to Prepare a 2013 Return

[RitaB]

Well, I'm not catching on. I need to prepare a return for an S-Corp that closed 6/30/13. I tried the Rollover / Last Period Tab, and I had no depreciation whatsoever. So, I rolled over 2011, just gonna look up 2012 depreciation from my copy of the 2012 return, figure the 2013 depreciation and override like a madman. I entered the 2013 dates on page one of Form 1120-S. I go to the asset list to start entering sale of assets, and there are many, and I can't enter 2013 dates. I really, really, really think I was able to prepare a short year return with the prior year software in a galaxy long ago and far away. Am I dreaming? Thought I'd ask you guys since I'm flying Han Solo here.

[rfassett]

I believe in keeping my life as simple as possible. I would extend this return and prepare it with the 2013 tax software when it comes out. The shareholders shouldn't care because they are not going to report the K-1 until then anyway. That would be my choice of action barring any compelling reason to make my life more miserable by trying to force the software to do something it is not designed to do. Should I have to take that approach, for whatever reason, my hourly rate would double or maybe even triple.

[Lee B]

I would definitely extend and wait to use 2013 Tax Software.

Otherwise, you will have to spend extra time making sure that you're in compliance with any tax changes.

[Guest Taxed]

If you are using ATX this may present an opportunity to test with the beta ATX 2013 later this fall??

[North Idaho Rich]

If you are using ATX this may present an opportunity to test with the beta ATX 2013 later this fall??

Robert at Atx just told me the beta program will be using the 2012 forms with 2013 pasted on them. It will be the new 2013 program software...

[TaxCPANY]

Dear RitaB,

Your intuition/memory is correct, to a point. Should you prepare the final 6/30/13 returns using 2012 software, you would have to do a lot of manual tweaking to make it good. Extending the return is not the best option, I believe; your shareholder(s)/client need a current-year K-1 -- under current law -- and, the entity should get this done by September 16, 2013 or, if extended, no later than *early* December, 2013 in order to get a *timely* "all clear" certificate from the state tax authority in which the entity is chartered, in order to include that certificate with its application to that state's Secretary of State for a formal dissolution notice. The SoS's with which I'm familar require such an "all clear" tax certificate -- and you can count on the SoS to take some weeks to finalize its own document.

I also don't believe you should wait for ATX to issue 'solid' 2013 forms before New Year's Eve -- not only because ATX blew it, last year. Your client/shareholder(s) really don't have the option of waiting til next year; they really must report the entity's results within this year -- AND the entity must be dissolved by New Year's Eve, accordingly.

If I were you, I would duplicate the 2012 return as "2013 [client]," and enter the current-year data. If your client's Fixed Assets are as numerous as I infer, you may need to convert the 2012 "4562 Statement" into an Excel spreadsheet, modify it to project the 2013 "short year" depreciation, and use the spreadsheet to inform a Form 4562 with your own totals -- also, to be attached as a Statement to the returns. Such a spreadsheet also will 'inform' the Form 4797 it sounds like you'll be filing.

N.B. A current, short-year return cannot be e-filed. Do you have software capable of changing the tax forms' upper righthand corner "2012" into "2013"? You should do that; it's always helped keep things straight, in my experience. I.e., I just filed a client's final 2013 S-corp as I've described -- and have filed a dozen or so, this way, over the years. NO problems.

VTY, TaxCPANY

[RitaB]

Thanks for the replies. Got the return done Wednesday. It was like eating pudding with a fork: not impossible but a total pain in the @$$. Glad it's done, because they were very anxious about what they were gonna owe, and I figured I might as well do it right now rather than do it sorta right now AND later. I love these people. I had to deal with the sale of about 20 assets, and the wife wanted a reduced rate for the tax return since they were only in business six months. (Uh, nooooo.) They only paid the realtor $32,000.