How would I clear EF Message 0688 on my 1120S?
INCORRECT OWNERSHIP PERCENTAGES: Shareholder K-1 ownership percentages
do not total 100%. Review the percentages entered for shareholders'
percentage of stock ownership on the K1 screens.
HINT: Rather than entering the percentage of ownership override, enter
the number of shares the shareholder owned at the beginning of
the year. The program automatically calculates the percentage of
ownership based on the number of shares each shareholder owned
compared to the total number of shares owned by all
shareholders. For the program to properly calculate the
ownership percentages for any changes of ownership during the
year, the number of share fields must be used.
If you are receiving EF Message 0688 on your S corporation return, your total ownership percentages on the K1s do not add up to 100%.
Instead of changing your ownership percentages, enter the number of shares at the start of the year in the field provided on screen K1E, allowing the software to automatically calculate the percentage of ownership.
