How do I

How do I… Write off Fund Formation Expenses and Select Tax Deductible/Non-Deductible

Having entered Fund Formation Costs during Fund Setup, you may wish to write off this Expense.

To write off this cost, choose EXPENSES from the Tab Menu.

Add new expense to write off

Click ADD NEW EXPENSE.

Select FUND in the Account Field.

Enter fund formation costs writeoff

In the FROM ACCOUNT field, select 1-1086 Fund Formation Costs.

Choose 1-1086 as From Account

Enter the Date and Description, then choose Account 5-1086 Fund Formation Costs Written Off in the ALLOCATE TO field.

Allocate to 5-1086

 

Enter the Total Cost (the amount you entered as Fund Formation Costs during the Setup process).

Complete the expense form

Click ADD EXPENSE to save.

When you perform Year End processing, the Written Off Fund Formation Costs amount will display in SECTION C: DEDUCTIONS.

Taxable Income Menu

By default, the amount will be displayed as a Deductible Amount at label L1: Other Amounts.

Leave as Deductible

Save deductions - deductible selected

 

If you do no wish to claim a Tax Deduction for Fund Formation Costs Written Off, you can manually enter the amount in the NON DEDUCTIBLE EXPENSES column at L1. The amount in the DEDUCTIONS column will change to 0.

Set as non-deductible

Save deductions - nondeductible selected


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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