Business Entity Details

1. In the Description field, enter a unique description to identify the business entity.
2. From the Type list, select the business entity type.
3. From the Owner list, select the name of the business entity’s owner.
4. To indicate that the asset is considered community property, select the Community Property check box.
5. Under Purchase Information, enter the date the asset was purchased, the original amount paid, and the number of units of the asset the owner has purchased.
6. Under Start of Year Value, enter the value of the asset, the asset’s cost basis, and the number of shares held as of January 1 of the plan year.
7. In the AMT Basis field, enter the start-of-year tax basis for alternative minimum tax (AMT) purposes.
   Note: For C corporations, this field will update automatically when a value is entered in the Cost Basis field.
8. Under Current Information, enter the date on which the current value of the asset was recorded and the per-unit value of the asset on that date.
9. Click OK. The Business Entity Details dialog box closes.

Note: The Activity tab is not available for C corporations.

1. In the Income field on the Activity tab, enter the income received as the return from the business entity asset. This amount does not affect cash flow.
2. In the Expenses field, enter the expenses paid towards the business entity asset. This amount does not affect cash flow.
3. In the Distributions field, enter the amount of distributions from business entity investments the client(s) made. Distributions affect cash flow during the time period of the activity.
4. Enter the value of AMT adjustments made for the business entity.
5. From the Frequency list, select how often the activity should occur.
6. If applicable, set the time period during which the activity should occur.
7. To index the asset to inflation, select the Infl check box.
   OR
   To index the asset to a percentage other than inflation, select the Infl check box, and then enter a percentage in the Add’l field.
8. To add additional incomes or expenses, click the Add Income/Expense button, and then repeat steps 1–7.

1. Go to the Sale Information tab.
2. If the asset is not to be sold, select Do not sell entity from the Sale Option list.
3. If the entire asset is to be sold on a specific date, follow these steps:
   • Select Sell entire entity from the Sale Option list, and then enter the sale date. Clicking the Event Calendar shows possible events and event types that can be used to define the date. For some event types, Offset fields are available to add or subtract years and months.
   • In the Selling Cost field, enter the percentage of the asset’s market value that will be the clients’ cost for selling the asset.
4. If the asset is to be sold in installments, select Sell in installments.

1. Go to the Sale Information tab.
2. From the Sale Option list, select Sell in installments, and then enter the start date for the sale in the Sale Date field.
3. In the Selling Cost field, enter the percentage of the asset’s market value that will be the clients’ cost for selling the asset.
4. Under Installment Sale Details, in the Seller Installment % of Sale Amount field, enter the percentage of the sale amount to be used for each installment.
5. In the Annual Interest Rate field, enter the annual interest rate for the business entity.
6. From the Payment Frequency list, select how often the installment payments are made.
7. From the Compound Frequency list, select how often the interest is compounded.
8. From the Payment Type list, select the period for making the installment payments. If the installments will be
   • Paid out over a period of time, select Amortized.
   • Interest-only payments, select Interest Only.
   • Amortized with an additional (balloon) payment, select Amortization with Balloon.
9. Enter the period for both the Length of Installment Sale and Length of Amortization.
   • To specify the Length of Installment Sale, enter a value in either the Years or the Months field.
   • To specify the Length of Amortization, enter a value in either the Years or the Months field.
10. Click OK to close the dialog box, or click Next Entry or Previous Entry to enter sale details for a different business entity asset.

1. Go to the Return Rates tab and then enter information in all applicable fields.
2. To include additional time periods with different rates of return, click the Add Growth Rate Range button, and then enter details in the Start Year and Growth Rate fields.

• Start-of-year tax basis for AMT purposes. Due to depreciation adjustments that flow through to the shareholder, member, or partner from the entity, this amount is usually different from the amount entered for regular cost basis.

Lists the available sale options for the business entity. The following options are available:

• Do not sell entity
• Sell entire entity
• Sell in installments

• Date of the sale of the entire business entity or the start date fo an installment sale.
  Note: The Event Calendar can be used to select a date based on events and type of event. For some event types Offset fields are available to add or subtract years and months

Anticipated costs associated with selling the asset, expressed as a percentage of the asset’s market value.

Installment Sale Details

Seller Installment % of Sale Amount

Percentage of the asset being sold by installments.

Annual Interest Rate

Annual interest rate to be used.

Payment Frequency

How often payments are made.

Compound Frequency

How often interest is compounded.

Payment Type

Allows you to select the payment method to be used.

• If Amortized or Interest Only is selected, the Years and Months fields under Length of Amortization are not editable, and modifying the values in these fields under Length of Installment Sale also updates both fields under Length of Amortization.
• If Amortization with Balloon is selected, both pairs of Years and Months fields are editable, and modifying the values in either the Years or the Months field updates the other field in the pair (that is changing the number of years updates the number of months, and vice versa).