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Is there a way to preview a future year's taxes using expected income and expenses without alteriing current year?

MrD1
Level 2

I'd like to be able to preview next year's taxes including tax loss carry forward impacts, but if I change income and expense in my 2020 return to expected 2021 income and expenses it will change my 2020 return.  Is there a format where I can preview future returns without impacting the current year return?

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9 Replies 9
TylorValdez1
Employee
Employee

You have two options. You can either copy the client and remove the information and enter the carryovers to begin a projection. The other option would be to use the Lacerte tax planner.

MrD1
Level 2

Thanks, Tylor.  If I do the first, would I then need to purchase a return in order to see the return information?

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TylorValdez1
Employee
Employee

No you will not. We will only bill you once per SSN in a particular tax year. Even if you copy a client and have to get REP,  we will only bill.

MrD1
Level 2

OK, thank you.

Mike D.

MrD1
Level 2

Results:  I copied the client  in question, removed the current year's information and entered the prospective information for 2021.  This gave me new tax results for a preview of 2021.  However, I don't know if it accurately accounted for "loss carry forward" after 2020 use of same or if it assumed 2020 loss carry forward.  

When I closed the system and reopened, the 2020 client number was changed to the preview client number and it appeared the system assumed that the preview was now the 2020 return.  I renewed all 2020 information and restored the 2020 return.  The preview return had assumed the client number of the original return and would not show the return until I paid an additional fee, which I didn't.  I then deleted the preview return and everything was restored to normal.  

Unfortunately this solution didn't accomplish my intent since I'm unclear on how the system handled the loss carry forward.

Thanks for your help.

Mike D.

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PhoebeRoberts
Level 9
Level 9

One of the pieces of "prospective information" you need to enter is any losses carrying into the what-if year, assuming you're using the "clone the Lacerte client" method of planning.

MrD1
Level 2

OK, got it.  Thanks.

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George4Tacks
Level 15

I will put in my usual plug for another wonderful program. It has a clean simple tax planning portion among it's multiple TOOLS. Look into Tax Tools https://www.taxtools.com/products_tt.aspx

If you ever do a 1031, it really pays for itself, but I regularly use it's tax planner as it is simple and can do forward projections or multiple options for same year. Another regular is the RMD calculator and loan amortizations. 


ex-AllStar
MrD1
Level 2

Thank you.

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