There appears to be an error in the optimized amount on the T2S2. The diagnostic clues in that it is wrong by the program wants to claim 100% of the donations
Thank you for reporting this to us.
Could you e-courier us the file (after removing any confidential info) for us to take a look?
Thank you!
Steven
That is a little tough to get rid of the confidential informaiton
@Jame1
Can you email us the steps to reproduce this?
Or if you can easily reproduce it in a new return, could you create one and send it to us?
Thank you.
Steven
It a large farm who files on the cash bases, so we have all the standard adjustments for AR AP inventory prepaids etc
Usually we will have large net income around 500,000 and large donations >75,000;
The client made an error and over paid the shareholders putting the company in a large loss which I used the optional inventory adjustment to bring the income up to 312
There is an associated company which has all the SBD allocated to it for this year leaving this company with none.
Really noting special
Thanks. Still unable to reproduce.
I entered on S125, income of $500,000. In S2, I added a current year charitable donation of $85,000.
On S1, net income is at $585,000. To arrive at your net income of $312, I entered a deduction of $584,688 on line 309 of S1. Optimization Wroksheet: Optimization 1 a) selected. S2 line F calculates $234 (75% x $312). I also selected the optimization method of 1 b) and get the same result.
I asked Tony of our office to reach out to you to get some more details. Thanks and have a great day!
Steven