How can I enter capital loss carryforwards?
You may choose one of two approaches: 1. View/Edit Taxes. One approach is to figure out how much of that carryforward will be able to be deducted each year, then open the report labeled “View/Edit Taxes” and enter that amount as a negative amount in the row for capital gains and losses. The “View/Edit Taxes” […]
How do liquidations work in the software?
Whenever there is net cash outflow in a given year (expenses exceed income), the software automatically liquidates assets to cover the cash outflow. This topic will cover how the calculations work and how to track them through the software. How the Calculations Work When assets are liquidated, tax has to be paid. The way the […]
How can I handle installment sales and notes receivable?
You can enter a note receivable, or an installment sale, as an investment asset. Outside the software, figure the amortization of the note receivable or installment sale note, and the portion of each payment that is return of capital, interest income, and capital gain. Create the asset. Enter just the description at the top level, […]
How can I enter non-qualified annuities from an insurance company?
There are two aspects to annuities, the income aspect and the asset aspect. You can deal with each separately. Income Aspect You can reflect anticipated annuity income by entering it as a write-in line in the section where you enter income. Specify the year the annuity will start paying as the “Start Year.” (On the […]
How can I reflect property division after tax?
The best way to reflect the implications is to use the “Property After Tax” worksheet. This can be found on the Analysis tab > Property After Tax. When you use this worksheet, please read all of the help available on the screen. The main thing of which to be aware is that the “Percent Paid […]
How can I enter an Employee Stock Purchase Plan?
There are two kinds of employee stock purchase plans: qualified and non-qualified. In qualified plans, the employee may purchase stock at a discount. When the employee sells the stock, some or all of the gain may be capital gain. Typically, some of the gain is also ordinary income. In nonqualified plans, the same is true, […]
How can I enter restricted stock units (RSU)?
Restricted stock units are promises by the employer to grant specified numbers of shares of stock to the employee in the future. Typically, restricted stock units are granted over time, following vesting periods. A restricted stock unit (RSU) may be forfeited if the employee leaves the company, violates securities act rules, and for other reasons. […]
How should I enter restricted vs unrestricted stock options?
A stock option is a right in which the company gives the employee the right to buy a number of shares of the company’s stock, usually at the current price. Let’s say the price when the option is issued is $100 a share. If the stock price goes up by $10, say, the employee has […]
What value should I give to unvested stock options?
Different states have different approaches to valuing stock options. Some states assign no value. Other states assign full face value. Still other states are somewhere in between. We suggest that you pick or negotiate some value in between. Then enter it as an Investment that pays no interest or dividends (but that may have a […]
How should I deal with the exercise of stock options?
Consider the following example: An employee has an option on a stock. In the year one, he exercises the option and buys the stock. Two years later, he sells the stock. The exercise price of the option is $60. The value of the stock on the date the option is exercised is $100. The employee […]