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Applies to: Finaloop Accounting
If last year's business tax return claims depreciation, your business had fixed assets, and if it claims amortization, your business had intangible assets. Finaloop Accounting, Finaloop's real-time bookkeeping and accounting service, needs their closing balances to set up your opening Balance Sheet correctly.
Fixed assets are physical things your business uses for more than a year, such as equipment, computers, vehicles and furniture. Their cost is spread over their useful life as depreciation. Intangible assets are non-physical things you paid for, such as trademarks, patents, software and goodwill. Their cost is spread out as amortization.
One way to check if you had fixed or intangible assets at the end of last year is to check if you took depreciation or amortization on last year's tax return. If you haven't yet filed last year's tax return, just check with your tax preparer. They should have this info handy.
Here's a short guide on how to find this info on your tax return. The line numbers are from the 2025 IRS forms, filed in 2026.
Tip: Your return may include Form 4562, Depreciation and Amortization. If it does, Part VI of that form, titled Amortization, lists amortization of intangible assets, so you can check there too.
1. Form 1120: C corporations (and LLCs or partnerships filing as corporations)
Both lines you need are in the Deductions section on page 1 of Form 1120.
① Depreciation (line 20), ② Other deductions (attach statement) (line 26).
Check for fixed assets (depreciation)
Grab your tax return (Form 1120).
Go to page 1, line 20, and check for depreciation.
If this line isn't blank or 0, it means you had fixed assets this past year.
Ask your tax preparer for the closing balance of the fixed assets on Dec 31, and report this info to Finaloop.
Check for intangible assets (amortization)
Grab your tax return (Form 1120).
Go to page 1, line 26 (Other deductions).
Check the number of the attached statement.
If a statement exists, find it towards the end of the tax return.
Check if there's a line for amortization. If a line exists, you have intangible assets.
Ask your tax preparer for the closing balance of the intangible assets on Dec 31, and report this info to Finaloop.
2. Form 1120-S: S corporations
Both lines you need are in the Deductions section on page 1 of Form 1120-S.
① Depreciation (line 14), ② Other deductions (attach statement) (line 20).
Check for fixed assets (depreciation)
Grab your tax return (Form 1120-S).
Go to page 1, line 14, and check for depreciation.
If this line isn't blank or 0, it means you had fixed assets this past year.
Ask your tax preparer for the closing balance of the fixed assets on Dec 31, and report this info to Finaloop.
Check for intangible assets (amortization)
Grab your tax return (Form 1120-S).
Go to page 1, line 20 (Other deductions). On 2022 and earlier returns, this is line 19.
Check the number of the attached statement.
If a statement exists, find it towards the end of the tax return.
Check if there's a line for amortization. If a line exists, you have intangible assets.
Ask your tax preparer for the closing balance of the intangible assets on Dec 31, and report this info to Finaloop.
3. Form 1065: partnerships
Both lines you need are in the Deductions section on page 1 of Form 1065.
① Depreciation (line 16a), ② Other deductions (attach statement) (line 21).
Check for fixed assets (depreciation)
Grab your tax return (Form 1065).
Go to page 1, line 16a, and check for depreciation.
If this line isn't blank or 0, it means you had fixed assets this past year.
Ask your tax preparer for the closing balance of the fixed assets on Dec 31, and report this info to Finaloop.
Check for intangible assets (amortization)
Grab your tax return (Form 1065).
Go to page 1, line 21 (Other deductions). On 2022 and earlier returns, this is line 20.
Check the number of the attached statement.
If a statement exists, find it towards the end of the tax return.
Check if there's a line for amortization. If a line exists, you have intangible assets.
Ask your tax preparer for the closing balance of the intangible assets on Dec 31, and report this info to Finaloop.
4. Schedule C (Form 1040): no legal entity or single-member LLC
If you run your business as a sole proprietor or through a single-member LLC (SMLLC) that isn't taxed as a corporation, your business income and expenses are on Schedule C of your personal return, Form 1040.
① Depreciation and section 179 expense deduction (line 13), ② Other expenses (from line 48) (line 27b).
Check for fixed assets (depreciation)
Grab your tax return (Form 1040).
Go to Schedule C.
On line 13 (Part II), check for depreciation.
If this line isn't blank or 0, it means you had fixed assets this past year.
Ask your tax preparer for the closing balance of the fixed assets on Dec 31, and report this info to Finaloop.
Check for intangible assets (amortization)
Grab your tax return (Form 1040).
Go to Schedule C.
Go to Part V (Other Expenses) on page 2. Its total carries to line 27b on page 1 (line 27a on 2024 and earlier returns).
Check if there's a line for amortization. If a line exists, you have intangible assets.
Ask your tax preparer for the closing balance of the intangible assets on Dec 31, and report this info to Finaloop.
① Part V Other Expenses, where each other expense is listed, ② Total other expenses (line 48).
5. How to report your balances to Finaloop
Once you have the closing balances from your tax preparer, share them with us so your opening Balance Sheet is right from day one:
Go to your Balance Sheet setup checklist.
Under Upload Documents, open Prior Year Tax Return and upload your complete tax return as filed with the IRS.
Open Prior Year Balance Sheet and upload your balance sheet, which includes your fixed and intangible asset balances.
If you've already finished your Balance Sheet setup, or you have the balances in a separate list, email them to [email protected].
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Not sure what you're looking at on your return? Email us at [email protected] and we'll help.